signed 950314
File: 11995-1(DRM)
Doc: 100
|
Subject:
|
The storage of empty containers which have been repositioned under the XXXXX
|
I refer to your letter of November 17, 1994, to Mr. Les Jones concerning the application of the Goods and Services Tax (GST) to the storage of empty containers. Attach to the letter were several correspondences between XXXXX and XXXXX[.] At issue; whether the storage fee charged by XXXXX to foreign clients may be zero-rated when it relates to the storage of empty containers whose internal movements have been zero-rated for purposes of the GST, to the extent allowed under the XXXXX[.] The argument put forward by XXXXX was that the storage may be considered incidental to the movement of the empty containers under the XXXXX XXXXX and therefore zero-rated. In the response issued by XXXXX, it states that the storage fee would not qualify as zero-rated under the administrative policy as set out by Revenue Canada.
I agree with the conclusion reached by XXXXX. The administrative policy as outlined by Revenue Canada was in respect of the internal movement of the empty containers under the XXXXX[.] The policy does not address the issue of storage of the empty containers, nor was it meant to address such issues. Furthermore, given that there is no provision in the Excise Tax Act (the Act) to relieve the tax under these circumstances, GST will be applicable at a rate of 7% on the storage fee charged by XXXXX for the storage of the empty containers.
If you have any questions and comments, please do not hesitate to contact Tom Alley, Tax Policy Officer at 952-9218.
J.A. Venne
Director
Tax Policy - Special Sectors
GST Policy & Legislation
c.c.: A. Belyea
c.c.: T. Alley
Email this Content