Words and Phrases - "disability"

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GST/HST Memorandum 21-3 Respite Care Services January 2019

Lodging can be provided

2. An exempt supply of a service of providing care and supervision to an individual with limited physical or mental capacity for self-supervision and self-care due to an infirmity or disability can include lodging at an establishment of the supplier.

Meaning of limited physical or mental capacity for self-supervision and self-care due to an infirmity or disability

3. An individual with limited physical or mental capacity for self-supervision and self-care is an individual who, because of their physical or mental health care needs (for example, chronic diseases or functional disabilities), does not have the ability to independently take care of themselves. The reference to self-care must be read together with self-supervision since an individual’s capacity for self-care is influenced by their capacity for self-supervision. For example, the fact that an individual requires assistance with meal preparation and basic activities of daily living alone is not indicative of the individual having limited physical or mental capacity for self-supervision and self-care.

4. The term infirmity is generally understood to mean physical weakness, especially due to age or disease.

5. For purposes of the GST/HST, disability generally refers to a long-term impairment that restricts an individual in carrying out their activities of daily living. The individual’s disability may be congenital or the result of an injury, a neuromuscular disorder (such as muscular dystrophy or multiple sclerosis), or another condition (such as cerebral palsy, paraplegia, amputation, pulmonary disease, heart disease, arthritis, diabetes, or a back disorder).

Supply of a service rendered principally at an establishment of the supplier

6. A supply of a service of providing care and supervision to individuals with limited physical or mental capacity for self-supervision and self-care due to an infirmity or disability must be rendered principally at an establishment of the supplier … . [P]rincipally means primarily. The CRA has defined primarily to mean more than 50%.

7. … The following factors … may be used to determine whether a premises is an establishment of a supplier:

  • who has authority over making operational decisions in the establishment
  • who has control of day-to-day operations of the establishment
  • who has presence in the establishment
  • the types of activities and routine carried on in the establishment …

Example 3: attendance of such an individual at a day program of ABC

… In addition to rendering care and supervision at its establishment Monday to Friday from 9 am to 3 pm, ABC includes day trips twice weekly to places such as museums, bowling alleys, and movie theatres. Since the service of providing care and supervision is rendered principally at ABC’s establishment, the supply made by ABC is an exempt supply under section 3 … .

Example 7: application of single-supply doctrine to care at establishment

A person operates an establishment where individuals with limited physical or mental capacity for self-supervision and self-care due to a disability spend each day between 10 am and 4 pm. An agreement is entered into where the person agrees to provide, primarily at the establishment, care, supervision, lunch, art supplies, and transportation to and from different activities. Throughout the day, healthy snacks are offered to the individuals at no extra cost.

… The provision of care and supervision is the dominant element of the supply … [and] the transaction … constitutes a single supply of a service.

Words and Phrases
disability infirmity

GST/HST Memorandum 21-2 “Residential Care Services” January 2019

meaning of disability, underprivileged, operated/single supply of residential care
  • “Underprivileged” generally “refers to an individual who, being unable to provide for their own or their dependants’ basic requirements (including food, shelter, clothing, fuel, utilities, household supplies, and special personal needs), is in need of assistance … .
  • “Disability” generally refers to “a long‑term impairment that restricts an individual in carrying out their activities of daily living” and does not extend to merely being elderly or frail person, or temporarily disabled or incapacitated (e.g., from surgery).
  • An establishment is “operated” by a supplier when it has “management and control of the establishment on a day‑to‑day basis” - as to which indicative factors would be, for instance, authority over making operational decisions in the establishment, control of day‑to‑day operations and physical presence.
  • Premises leased or licensed to the supplier under an agreement can qualify; and “an establishment staffed by employees of a supplier would generally also be considered to be an establishment operated by the supplier.”
  • A supply of a service of arranging for a third party to supply the indicated items would not qualify, e.g., a provincial government contracts with a corporation to provide care, supervision, and a place of residence to a young adult with a disability and that corporation, in turn, arranges for a third party to provide the services.
  • Individuals’ provision of foster care is not considered to be a commercial activity and, thus, is not subject to GST/HST.
  • Supplies of services such as assessment, placement, and monitoring services regarding residential foster care are not exempt under Sched. V, Pt. IV, s. 2.
  • A person operating a long‑term residential care facility for residents with a disability who provides care, supervision, a place of residence, social worker services, activities (for example, arts and crafts), and meals will be considered to be making a single supply of a service whose dominant elements are those described in Sched. V, Pt. IV, s. 2, i.e., the provision of care, supervision, and the place of residence.
  • Where tenants under leases of residential units in a residential complex may acquire optional services for additional fees, such as personal grooming, laundry, and cleaning services, there will be considered to be multiple supplies, i.e., of real property and e.g. laundry services.
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply single supply of residential care 55
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Commercial Activity foster care not a business 21