Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 234939
Dear [Client]
Subject: GST/HST RULING
[…][Whether the Congress is a foreign convention]
Thank you for your letter of [mm/dd/yyyy], concerning whether the above event qualifies as a foreign convention for purposes of the goods and services tax/harmonized sales tax (GST/HST).
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the facts to be as follows:
1. The […] (the Congress) will be held in […][Canada], from [mm/dd] to [mm/dd/yyyy].
2. The Congress is the […] meeting of the […] (the […][Organization]) and will present and discuss the latest research […][in the field of research], facilitate interaction between members who meet from all corners of the globe, and promote the broad discipline of […].
3. The overall planning of the Congress is organized by the [Organization] […].
4. The [Organization] is registered [in Country B] and is a staff-supported, member-driven organization with [#]+ members located in over [#] countries.
5. The [Organization] is a not-for-profit corporation organized for scientific, charitable, and educational purposes.
6. According to the [Organization]’s website at […]:
- The [Organization] is governed by a [#]-person Board of Directors, [15%] of whom are Canadian. Board terms typically last [#] years in duration and elections are held every [#] years.
- Board member’s responsibilities are to:
- Participate in quarterly meetings of the board (one meeting is a face-to-face meeting that takes place at the [Organization]’s […] congress, the other three meetings are managed by teleconference call).
- Represent the views of members of the [Organization] to the Board of Directors.
- Serve on standing or ad hoc committees as required.
- Maintain their membership in good standing for the duration of their term
- Participate without consideration of financial compensation
- Responsible for electing officers from within the qualified list of Board Members when these roles become vacant.
- Membership in the [Organization] is open to scientists, researchers, clinicians and students from around the world involved in the many research and practical aspects of […][the field of research]. Membership dues support the [Organization]’s mission of creating a community of [field of research] researchers and students.
- According to the […][Congress agenda], the Congress will begin with [#] […]-hour pre-congress workshops, followed by an opening ceremony, keynote lecture and reception. The remaining [#] days have [#] one and a half-hour periods that offer attendees a choice between [#] simultaneous oral or symposium sessions, [#] one-hour keynote lectures, [#] half-hour sessions for […], emerging scientist talk, honorary member presentation and annual general meeting and [#] […][…]-hour sessions for posters and exhibitors. The Congress will end with a gala dinner.
7. In your submissions, you made the following statements on behalf of the [Organization]:
- The purpose of the Congress is not to provide any of the following:
- provide any type of amusement, entertainment, or recreation,
- conduct contests, or games of chance, or
- transact the business of the convener or attendees, in the course of a trade show open to the general public, or otherwise than in the course of a trade show
- The [Organization] is the sponsor of the Congress, and is in charge of supplying admissions to attendees, and spaces to exhibitors authorized to promote their products.
- The [Organization] expects that approximately [#] people will attend the Congress and that at least 75% of the paid admissions will be for non-residents of Canada based on statistics of the past four meetings [in Canada and other countries]:
- [yyyy] – […][Country C] – Total delegates = [#] (18% Canadian […])
- [yyyy] – […][Country D] – Total delegates = [#] (20% Canadian […])
- [yyyy] – […][Country F] – Total delegates = [#] (25% Canadian […])
- [yyyy] – […], Canada – Total delegates = [#] (24% Canadian […])
- To accommodate persons […] who may be restricted from attending in person, an admission fee to attend the Congress virtually was added. The percentage of paid admissions by non-residents is still expected to be over 75% with the implementation of virtual attendance.
RULING REQUESTED
You would like know if the Congress is a foreign convention?
RULING GIVEN
Based on the facts set out above, we rule that the Congress is a foreign convention.
The sponsor of a convention is defined under subsection 123(1) to mean the person who convenes the convention and supplies admission to it. The sponsor must maintain documents supporting its calculation of the percentage of admissions that are reasonably expected to be supplied to non-residents in order to prove that a convention is a foreign convention, and make these documents available to the Canada Revenue Agency (CRA) on request. Under subsection 286(1), these documents must be kept in Canada unless the sponsor gets permission from the CRA to maintain them outside Canada.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the CRA is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 343-553-3517. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Russell Vermette
Services and Intangibles Unit
General Operations and Border Issues Division
GST/HST Rulings Directorate
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