27 January 2005 GST/HST Interpretation 51529 - Application of GST/HST to Operation of Recreation Centre

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.     

This is further XXXXX to Dwight Kostjuk of this unit. His query relates to whether amounts paid by the XXXXX to its Chief and Council members for the purpose of evacuating community elders qualify for a code 8 rebate under Technical Information Bulletin - TIB-039R - Application of GST to Indians (B-039R). The amounts paid by the XXXXX to its Chief and the different members of the Council to cover expenses incurred for the evacuation of community elders were similar to that of an allowance. XXXXX advised that the need to evacuate the elders was due to a XXXXX.

Because XXXXX was reviewing general rebate claims made by the XXXXX at the time when he contacted this office, Dwight confirmed XXXXX to him that the XXXXX would be entitled to code 8 rebates on these amounts. Dwight advised that a response would be forthcoming by way of an internal memorandum. This memorandum serves to provide that response.

Opinion Requested:

Is the XXXXX entitled to claim a code 8 rebate of 7/107 in respect of amounts paid to its Chief and Council members to cover expenses incurred for the evacuation of community elders in an emergency situation?

Opinion Given:

The XXXXX is entitled to claim a code 8 rebate of 7/107 in respect of amounts paid to its Chief and the Council members to cover expenses incurred for the evacuation of community elders in an emergency situation.

Explanation:

In the case at hand, the evacuation of community elders by the XXXXX from a hazardous location caused by XXXXX was to ensure their health or safety.

The evacuation of band members (e.g., community elders) by a band in an emergency situation such as a fire, drought, storm, or earthquake can be paralleled, for example, with the evacuation by a municipality of individuals within its geographic area in the same circumstance.

As the activity of evacuating band members by a band is not a commercial activity for which it can claim an input tax credit, this activity qualifies as a band management activity as defined in B-039R. The amounts paid by the XXXXX to its Chief and Council members for this purpose will be treated as an eligible travel expense (i.e., travel, meals, accommodation and entertainment) under B-039R. As such, the XXXXX is entitled to claim a code 8 rebate of 7/107 in respect of amounts paid to its Chief and Council members for the evacuation of community elders.

If you have any questions or would like to discuss further, please call me at (613) 954-7952.

XXXXX
XXXXX

2005/01/10 — RITS 52590 — Motor Vehicle Leases and PPSA Fees