25 July 2007 GST/HST Interpretation 90193 - Tax Status of Midwifery Services

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 persons that have made a section 156 election and that have had a change of legal name.

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

Note: The amendments proposed for section 156 received Royal assent on June 22, 2007. The following comments relate to section 156 in its form both prior to and after Royal assent.

Interpretation Requested

You would like to know if a corporation that is party to a valid election under subsection 156(1) changes its legal name, does this mean that the corporation must refile the subsection 156(1) election? If so, is the election invalid until it refiles?

Interpretation Given

In referring to parties to the election and the requirements for making the election, section 156 uses the word "person". Thus, the election applies between persons.

Changing a corporate name does not dissolve the corporation or otherwise cause the corporation to cease to exist. In other words, only changing the name of a corporation, i.e., the corporation still has the same incorporation number, does not change the corporate person. If there are no other changes that cause the corporate person to dissolve or otherwise cease being that person or that negate one of the conditions for the election, the election would continue to apply since, with only a name change, there has been no change of person. The nature of the changes and their effects would be a question of fact.

While there is no need to re-file the election where there has been a change only in the legal name of the corporation, the corporation must inform the CRA of the change of legal name and submit proper documents showing the change.

The foregoing comments represent our general views with respect to the subject matter of your request. These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, do not bind the Canada Revenue Agency with respect to a particular situation. Future changes to the ETA, regulations, or our interpretative policy could affect this interpretation.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-4394.

Yours truly,

Doris McMullan
Corporate Reorganizations Unit
Financial Institutions & Real Property Division
Excise and GST/HST Rulings Directorate

2007/07/16 — RITS 91405 — Applicability of GST/HST to Proposed Tax