Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
SUBJECT: GST TAX CREDIT PRISON OR SIMILAR INSTITUTION SECTION: 122.5(2)(c)]
920660
XXX R.B. Day
(613) 957-2136
April 10, 1992
Dear XXX
We are writing in reply to your letter of February 27, 1992, wherein you requested our opinion on the eligibility of patients in a psychiatric facility to claim the "Goods and Services Tax Credit" (GSTC).
Our Comments
Subsection 122.5(1) of the Income Tax Act (the Act) sets out those persons who are eligible to claim the GSTC. Subsection 122.5(2) of the Act, on the other hand, sets out those situations whereby the persons described in subsection 122.5(1) of the Act are not eligible to claim the GSTC. Specifically, paragraph 122.5(2)(c) of the Act denies the GSTC to a person who
- " is, at the end of the year, confined to a prison or similar institution and has been so confined for a period of, or periods the aggregate of which in the year was more than, 6 months."
In this regard it is our opinion that "a prison or similar institution" would include penitentiaries, detention centres, reformatories and mental hospitals designated to be used for the detention of the criminally insane, etc.
In view of the foregoing, it would involve a finding of fact in each situation as to whether or not a particular patient would be eligible to claim the GSTC.
Should you require further assistance on a case-by-case basis, we would suggest that you contact the Chief of Enquiries and Office Examination in the District Taxation Office in which the particular patient usually files their T1 return.
We trust our comments will be of assistance to you.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental Affairs Branch
C.C. XXX
Assessment of Returns Directorate
Client Assistance Directorate
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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