13 March 2003 GST/HST Ruling 44051 - Rebate for GST on Printed Books

Dear XXXXX:

This is further to your letter XXXXX in which you asked us to reconsider our conclusion that your client, XXXXX (the School), does not meet the requirements to claim the 100% rebate on books under section 259.1 of the Excise Tax Act (ETA).

Statement of Facts

Our understanding of the facts is as follow:

•   The School was incorporated under the XXXXX;

•   The School was registered as a Private Vocational School XXXXX XXXXX and has held a certificate of registration under the Private Vocational Schools Act for the years XXXXX;

•   The School does not qualify as a non-profit organization under subsection 123(1) of the ETA.

You stated that the School is a vocational school as defined in section 1 of Part III of Schedule V to the ETA.

Ruling Requested

You request that we determine that the School is a "specified person" under subsection 259.1(1) of the ETA.

Ruling Given

Based on the facts set out above, we rule that the school is not a specified person for the purposes of specified person of the ETA.

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to our interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Explanation

In order to qualify for a book rebate under subsection 259.1(2) of the ETA, a person is required to be, on the last day of its claim period or of its fiscal year that includes that claim period, a specified person.

The expression "specified person" is defined in subsection 259.1(1) of the ETA and does not include a vocational school. As you mentioned in your letter, the wording of the definition of "specified person" is tightly written to exclude private vocational schools. So, unless an otherwise eligible person, the School cannot claim the book rebate under subsection 259.1(2) of the ETA

The Canada Customs and Revenue Agency's mandate is to administer the ETA and its regulations as enacted by the Parliament of Canada. Amendments to the ETA and its regulations fall within the purview of the Department of Finance. We have taken the liberty of sending copies of your letter and our response to the Department of Finance for their consideration when contemplating any future legislative changes.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact Chantal Desrosiers, Manager, at (613) 954-7936.

Yours truly,

Pierre Bertrand
Director
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate