7 June 2005 GST/HST Interpretation 57924 - Timing Issue - Interest & Penalties - Rebate Overpayments - Assessments against Suppliers

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Dear XXXXX:

Thank you for your letter XXXXX addressed to Ms. Vethanayagam, with regard to our GST/HST Application Ruling XXXXX. You request that we review and vary the position taken in that ruling concerning the application of the GST/HST to the supply of metered and non-metered street parking made by the City XXXXX.

You remain of the opinion that all on-street vehicle parking by the public in the City is of the same class of supply of real property, wherever and whenever parking is occurring in the City.

Generally, a supply of a parking space is the supply of a right to use real property by way of lease, licence or similar arrangement. As such, the supplies of metered street parking made by the City are taxable supplies for GST purposes unless they are exempt under the provisions of Schedule V to the Excise Tax Act ("the ETA"). You have expressed your view that the supplies of metered street parking made by the City are exempt supplies pursuant to section 10 of Part VI of Schedule V to the ETA. This section provides, in part, that a supply of any property made by a public sector body is an exempt supply where all or substantially all of the supplies of the property are made for no consideration.

We have re-examined your original submission, and considered the additional information provided with your most recent submission particularly with respect to Policy Statement P-221, Meaning of the phrase "a particular class or kind" as found in subsection 153(3) of the Act, and your views regarding our earlier explanations that accompanied our previous ruling. We are still of the view that non-metered street parking and metered street parking are not of the same class of supply of real property for purposes of section 10 of Part VI of Schedule V to the ETA.

As such, we wish to confirm our initial ruling XXXXX. In this case, section 10 of Part VI of Schedule V to the ETA does not apply as less than "substantially all" of the supplies of the metered street parking are provided for no consideration.

Should you wish to discuss the matter further, please do not hesitate to contact me at (613) 954-3772.

Sincerely,

Marcel R. Boivin
Manager
Real Property Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate

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