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Finance Proposes GST/HST Exemption for Hospital Parking 

Canadian Tax Adviser


January 24, 2014


The Department of Finance announced proposed GST/HST exemptions for qualifying public hospital parking on January 24, 2014. Based on the proposed amendments, qualifying parking provided by a public hospital will be exempt from GST/HST effective January 25, 2014. In addition, qualifying hospital parking provided by a charity (that is not a public hospital) will be GST/HST exempt retroactive to March 22, 2013.

Finance has also proposed to reintroduce a previously announced measure to treat other supplies of parking provided by charities as GST/HST taxable effective March 22, 2013.


In general, subject to certain exceptions, the new exemptions apply to supplies of parking made by a charity or a public hospital to patients, visitors and staff of that hospital.


Qualifying charities and hospitals should review the proposed new GST/HST exempting measures and determine whether they meet all the requirements. Among other conditions, charities and hospitals may want to determine whether their parking areas qualify for the new exempting provisions. They may also want to review the new measures in light of parking agreements with hospital staff and any other entities.


Finance's proposal reintroduces a 2013 federal budget measure to deem the supplies of paid parking by charities to generally be GST/HST taxable supplies effective March 22, 2013. This measure would apply where it could be expected that the parking spaces would be used primarily by individuals accessing facilities of a municipality, a school authority, a public college, a university or a hospital authority. This budget measure was not included in the 2013 budget bills passed by Parliament. However, as part of today's proposed amendments, Finance also proposed new GST/HST exemption provisions for public hospital parking made by a hospital authority or by a charity.


Please note that a charity does not include a "public institution". In general, a public institution includes an entity that is a school authority, a public college, a university or a hospital authority, that also qualifies as a charity.


The proposed measures also provide a transitional rule where a charity has remitted GST/HST on exempt supplies of parking for the period of March 22, 2013 to the announcement date (i.e., January 24, 2014).


Interested parties have until February 24, 2014 to provide Finance with comments on the draft legislative proposals. Quebec also announced that it plans to amend the QST to reflect these GST/HST proposed amendments.


A news release and the legislative proposals are available on Finance's site.


For more information, contact your KPMG adviser.






Information is current to January 24, 2014. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500


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