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THE ADVOCATE V O L . 7 5 P A R T 2 M A R C H 2 0 1 7 207 ticular file number shall be deemed to be distinct from all other legal services recorded under any other file number and shall be invoiced separately from those other legal services. The lawyer would then establish two distinct file numbers for the client and would record and invoice the costs incurred prior to the commencement of litigation separately from the costs incurred after the commencement of litigation. Unfortunately, the provisions of the Excise Tax Act are complex and are often subject to the administrative policies of the Canada Revenue Agency (“CRA”), which can change without prior notice. This article attempts to distill the relevant provisions of the Excise Tax Act into a decision matrix that is easy to use and that reflects the CRA’s current administrative policies. THE DECISION MATRIX The following matrix is composed of a series of questions that are intended to be applied to each relevant service that is (or is to be) rendered by a lawyer, in order to determine if GST applies to that particular service, and if so, the applicable rate of GST. Each question generally has only two possible answers (either yes or no) and each answer leads either to another question in the matrix or to a final determination. The endnotes are integral to the application of this decision matrix. QUESTIONS IF YES IF NO START 1. Is the recipient of the particular service the federal GST APPLIES TO THE SUPPLY Proceed to question #2 government or the government of British Columbia, OF THE PARTICULAR SERVICE Quebec, Nunavut, Ontario, Nova Scotia, Prince Edward Island, New Brunswick or Newfoundland and Labrador or Proceed to question #58 an agent, crown corporation, board or commission of any such government? 2. Is the recipient of the particular service the government of Proceed to question #3 Proceed to question #4 Alberta, Saskatchewan, Manitoba, Yukon or the Northwest Territories or an agent, crown corporation, board or commission of any such government? 3. Has an authorized official of the government or the agent, THE SUPPLY OF THE SERVICE GST APPLIES TO THE SUPPLY crown corporation, board or commission of such IS NOT SUBJECT TO GST OF THE PARTICULAR SERVICE government issued a certificate confirming that the particular service is not subject to GST or that it is purchased with Crown funds? Proceed to question #58 4. Is the recipient of the particular service a corporation? Proceed to question #5 Proceed to question #8 5. Is the corporation either incorporated in Canada or THE RECIPIENT IS DEEMED14 TO Proceed to question #6 continued in Canada and not thereafter continued BE A RESIDENT OF CANADA elsewhere?


March Pages 2017
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