Words and Phrases - "program"
GST/HST Memorandum 20-7 “Second-language Instruction” December 2019
Limited to English/French as 2nd languages
3. … The exemption does not apply to other courses relating to English or French, such as courses intended to help students improve their command of English or French when it is their first language, nor does it apply to the supply of instruction in languages other than French or English.
Meaning of “program”
6. For the purposes of the exemption under section 11 of Part III of Schedule V, the term program is generally understood to refer to a particular series of courses that:
- follow a logical sequence
- fit together in a coherent way
7. The courses that form part of a program generally have a common subject matter or purpose, and the program itself should also have the purpose to develop students’ skills in English or French as a second language.
8. While a program generally consists of a series of courses, it is not necessary that an individual take all of the courses offered as part of that program for the exemption in section 11 of Part III of Schedule V to apply.
[In Example 2, this requirement was satisfied where a continuing education program of a public college provides course in four languages including French, and provides for three levels of French language instruction.]
22. To determine if a business of a person was established primarily to provide instruction in languages, the CRA will examine the facts surrounding that business to determine the purpose for which the business was established. The CRA will consider factors such as the business’s ongoing activities and operations, as well as its promotional materials (brochures, advertisements, course guides, etc.), which may provide evidence of the purpose for its establishment.
23. … The CRA will consider a business to be operated primarily to provide instruction in languages if more than 50% of its total annual revenues are derived from fees/tuition for, or can be attributed to instruction in, language courses. …
26. … [I]f the portion of the business’s total annual revenues that is derived from language course fees/tuition or that can be attributed to instruction in these courses falls to 50% or less during the following fiscal year, the business would no longer be considered to be operated primarily to provide instruction in languages in the next fiscal year.
GST/HST Memorandum 20-1 "School Authorities - Elementary and Secondary Schools" December 2019
Meaning of program
54. A program is more than a miscellaneous collection of courses that relate to a given topic or area or that have been grouped under a particular heading. Rather, a program must consist of 2 or more courses that usually have a common subject matter or purpose and that fit together in a coherent way or in a logical sequence.
55. It is not necessary that all of the courses in a program be offered every year or semester, as long as the program includes 2 or more courses that are available on a periodic basis. It is also not necessary that a program be a recurring program. Provided it is made up of 2 or more courses, a program could, for example, be created to meet a need for a single year.
56. In addition, it is not necessary that an individual take all the courses in a program for the exemption to apply as the exempting provision is for the supply of instruction in a particular set of courses within a program offered by a school authority, not the planned course or program of studies of an individual.
57. The exemption under section 16 of Part III of Schedule V does not necessarily extend to all courses under a program, and each course must be separately evaluated to determine whether the supply of the course meets the conditions set out in this section. In some cases, courses in a program may have different tax statuses as the program may include a combination of qualifying courses and courses designed to be taken primarily for recreational purposes, the supply of which is specifically excluded under section 16.
Exclusion for recreation
58. For the purposes of the exemption under section 16 of Part III of Schedule V, an activity designed to be taken primarily for recreational purposes is understood to be an activity designed to be an enjoyable diversion or pastime. A recreational course may be informative but is mainly directed at satisfying the participant’s interest or desire for enjoyment or at enhancing the participant’s social activities. …
60. Examples of recreational courses include non-credit courses in subjects such as dancing, skating, cooking or sailing.