Office

An individual, who entered into a power of attorney with two other individuals who due to their age and health have determined that they require a power of attorney, may charge the two individuals for the supply of the power of attorney services. In confirming that such supply was not subject to GST/HST, CRA stated:

A power of attorney is an “office” for purposes of the definition of “office” under subsection 123(1). Services performed in the course of the performance of an “office” are excluded from the definition of “business” under that same subsection. The performance of the duties pursuant to a power of attorneyship is not considered to be a supply made in the course of commercial activities.

Executor B practiced as a lawyer could include the supply of executorship services, but no longer was licensed to practice law from shortly after the death of Mr. X, for whose estate Executor B acted as executor. The estate p[aid executors’ fees to Executor B and the other executor, and remitted HST to the Receiver General in respect of the fee. After noting the exclusion from the definition of office of an executor “where the person who acts in that capacity is entitled to an amount for doing so that is included in computing… the person’s income from a business,” CRA stated:

[I]t is possible that Executor B’s legal practice may have supplied executorship services in its normal course of business. However, in the absence of direct evidence to support the position that this is the case we…conclude that Executor B performed the executor services in relation to an office and he is not considered to have made a taxable supply… .