31 October 2000 General Information Letter 31823 - GENERAL INFORMATION LETTER GST/HST Rebate

Dear XXXXX:

Thank you for your letter of June 20, 2000, concerning the entitlement by the XXXXX to a rebate of the GST/HST paid on purchases acquired for use in the course of its activities.

We understand that the Council's main activity is to supply assistance to seniors in order that they may be able to stay at home longer and keep their independence. Its operations are carried on by volunteers and funded by a grant from the XXXXX and from donations and fund-raising activities.

Unfortunately, we have not been provided with enough information to determine if your organization would qualify for the public service rebate provided under the Excise Tax Act. Based on the information provided, it appears unlikely that XXXXX would qualify for a rebate as a para-municipal organization. However, XXXXX could qualify for a 50% rebate of the GST/HST paid or payable on eligible purchases, if it is a charity or a qualifying non-profit organization.

Charity means a registered charity for income tax purposes, that has a number that allows it to issue official tax receipts for donations. Effective January 1, 1997, a charity for GST/HST purposes does not include a public institution (for example, a university or hospital authority).

A non-profit organization means an entity (other than an individual, an estate, a trust, a charity, a public institution, a municipality, or a government) that meets the following conditions:

•   It is organized and operated solely for non-profit purposes.

•   It does not distribute or make available any of its income for the personal benefit of any member unless the member is a club, a society or an association which has, as its primary purpose and function, the promotion of amateur athletics in Canada.

A qualifying non-profit organization means a non-profit organization that receives at least 40% of its total revenue from government funding during the year or the previous two years. A copy of the guide GST/HST Information for Non-Profit Organizations is enclosed for your information. A discussion of the rebate that may be claimed by qualifying non-profit organizations starts on page 12 of the guide.

For additional information concerning your organization's entitlement for a GST/HST rebate, please contact your local Tax Services office at XXXXX.

Yours truly,

Elaine Bonnah
Municipalities and Health Care Services
Public Service Bodies and Government Division
Excise and GST/HST Rulings Directorate