2 November 2006 GST/HST Interpretation 82152 - XXXXX

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 concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to supplies of health care services made by a medical practitioner.

All legislative references are to the Excise Tax Act (ETA) and the regulations therein, unless otherwise specified.

Statement of Facts

We understand that your request concerns a proposed transaction described as follows:

1. The supplier is a professional corporation in the province of XXXXX that is licensed under the laws of that province to practise the profession of medicine.

2. The supplies made by the supplier are patient care services, which you have referred to as "clinical services".

3. The services rendered do not include surgical services rendered for cosmetic purposes and not for medical or reconstructive purposes.

Ruling Requested

You would like to know whether the clinical services supplied by a professional corporation are exempt supplies described in section 5 of Part II of Schedule V.

Ruling Given

Provided that the clinical services are supplies of consultative, diagnostic, treatment or other health care services rendered to an individual (other than a surgical service that is performed for cosmetic purposes) and these supplies are made by a "medical practitioner" as that term is defined in the ETA, these supplies will fall within section 5 of Part II of Schedule V.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Goods and Services Tax Rulings. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

OTHER INFORMATON

With respect to your request involving supplies made by professional corporations, please note that for purposes of the ETA, a "medical practitioner" means a person who is entitled under the laws of a province to practise the profession of medicine or dentistry. It is our understanding that in the province of XXXXX, all physicians must be members of the College of Physicians and Surgeons XXXXX in order to practise medicine in that province. The role and authority of the College are set out in the XXXXX Act and the XXXXX Act. Under the XXXXX Act, physicians who are members of the College are permitted to establish a professional corporation for the purpose of practising medicine. Physicians incorporate under the Business Corporations Act. Following incorporation, the professional corporation must apply to the College for a certificate of authorization for a corporation to practise medicine. This certificate, which must be renewed annually, is issued under the XXXXX Act and without it the professional corporation is not permitted to practise the profession of medicine.

Accordingly, where a professional corporation holds a valid certificate of authorization to practise the profession of medicine issued under the XXXXX Act, that corporation will fall within the meaning of "medical practitioner" as defined in the ETA.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-6761.

Yours truly,

Susan Eastman
Municipalities and Health Care Services Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate

2006/11/09 — RITS 82622 — [Application of the GST/HST to Yoghurt]