3 October 2006 GST/HST Interpretation 80092 - Application of the GST/HST Rebate for a Multi-employer Plan (MEPP)

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Dear XXXXX:

Thank you for your letter XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) rebate for a multi-employer plan (MEPP).

All legislative references are to the Excise Tax Act (ETA) and the regulations therein, unless otherwise specified.

Statement of Facts

The XXXXX (The Plan) is a registered pension plan as defined in subsection 248(1) of the Income Tax Act (ITA). The Plan's registration number is XXXXX.

The Plan currently has no 'active members' as defined in subsection 8500(1) of the Income Tax Regulations (ITR). The Plan last had 'active members' in the year 2003.

Ruling Requested

You would like to know whether The Plan can reasonably be considered a MEPP and therefore is eligible for the rebate provided for under section 261.01.

Ruling Given

Based on the facts set out above, we rule that The Plan is not eligible for the GST/HST rebate provided for under subsection 261.01.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Goods and Services Tax Rulings. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

The availability of the rebate afforded under subsection 261.01(2) is dependent on whether a plan meets the definition of "multi employer plan" found in subsection 261.01(1).

Subsection 261.01(1) clearly states that in order to be considered a MEPP for purposes of the rebate, a pension plan must meet the definition of "multi-employer plan" in subsection 8500(1) of ITR.

Your submission acknowledges the fact that The Plan does not currently meet the requirements of the MEPP definition of the ITR. As such, the ETA does not allow for The Plan to avail itself of the rebate provided for in section 261.01. Whether The Plan fully met the definition of MEPP contained in the ITR at any point in the past is a question of fact and one not addressed in your submission.

For your convenience, find enclosed a copy of GST/HST Memorandum 1.4, Goods and Services Tax Rulings.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 952-8811.

Yours truly,

Andrea Suley
Specialty Tax Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate

2006/11/06 — RITS 81221 — [Application of the GST/HST to Packing Services]