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Attention: XXXXX
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August 3, 1994
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Subject:
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Special GST Credit for Certified Institutions
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Dear XXXXX
Thank you for your letter dated April 14, 1994, concerning the Special GST Credit provided under section 230.2 of the Excise Tax Act to GST registrants that were certified institutions under the former Federal Sales Tax.
As you are aware, these certified institutions are entitled to apply this special credit against their GST collectible on a declining percentage basis as follows:
100% of the GST collectible in 1991 on the sale of goods manufactured by disabled individuals,
75% in 1992,
50% in 1993,
25% in 1994 and
0% for calendar years after 1994.
Certified institutions have up to four years after the particular reporting period during which they were entitled to claim this credit in order to make their claims under this provision of the Excise Tax Act.
You suggest in your letter that it would be prudent to offer a continuance of this program beyond 1994 at a rate of 50% of the GST collectible on the sale of manufactured goods by these organizations.
We appreciate receiving your comments on this matter. We would explain however that the responsibility of the Department of National Revenue is to administer the provisions of the GST according to the legislation that has been passed by Parliament. Any changes to this legislation are the responsibility of the Department of Finance. Accordingly, we will refer your letter with your comments on this Special GST Credit to the Minister of Finance.
I hope that this will be satisfactory. If you have any questions concerning the application of the GST to certified institutions or any other concerns regarding the GST, please contact Elaine Bonnah at (613) 952-6761 or your local Excise/GST Office located at XXXXX.
Yours truly,
J.A. Venne
Director
Tax Policy - Special Sectors
Policy and Legislation
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