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XXXXX
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File #: 11685-3(glr)
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Dear XXXXX
Please refer to my letter of April 28, 1995, regarding the application of the Goods and Services Tax (GST) to goods purchased by XXXXX personnel for export from Canada. On pages 3 and 4 of my letter I discussed the residence status of XXXXX personnel and whether these personnel were eligible for the GST rebate provided to non-residents.
On April 23, 1996, the Honourable Paul Martin, Minister of Finance, tabled a Notice of Ways and Means Motion to amend the Excise Tax Act (Act). One of the proposed amendments will be of particular interest to you and your staff.
Effective April 24, 1996, individuals who are deemed to be resident in Canada under subsection 250(1) of the Income Tax Act, other than sojourners deemed resident by virtue of paragraph (a) of that subsection, are deemed to be resident in Canada for GST purposes. The following persons are, therefore, deemed to be resident in Canada if the person:
(b) was, at any time in the year, a member of the Canadian Forces; ...
(e) was resident in Canada in any previous year and was, at any time in the year, the spouse of a person described in paragraphs (b) ... living with that person; or
(f) was at any time in the year a child of, and dependent for support on, an individual to whom paragraph (b) ... applies and the person's income for the year did not exceed the amount used for the year under paragraph (c) of the description of B in subsection 118(1) (of the Income Tax Act).
The above amendment confirms that members of the XXXXX and their spouses and dependents, are not eligible for the GST rebate provided under section 252 of the Act.
A copy of this letter is being forwarded to XXXXX[.] The foregoing comments represent our general views with respect to the proposed amendment to the Act relating to the subject matter of my pervious letter. These comments are not rulings and, in accordance with the guidelines set out in Section 1.4 of the GST Memoranda Series, do not bind the Department with respect to a particular situation.
If you have any questions or require further information, please contact Mr. Garry Ryhorchuk at (613) 952-6743 or Mr. Randy Nanner at (613) 952-8810.
Yours sincerely,
H.L. Jones
Director
General Applications Division
GST Rulings and Interpretations
Policy and Legislation Branch
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R. Nanner GAD #: 2919(GEN)
G. Ryhorchuk |
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