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1991-004-e.html
SERVICES PAY DIRECTIVE: 1991-004 (03)
January 17, 1991
Ottawa,
Canada
K1A 0S5
SUBJECT: Goods and Services Tax
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1
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PURPOSE
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1.1
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This directive is to advise you of the role of Supply and Services Canada
(SSC), Compensation Directorate, concerning the application of the Goods and
Services Tax (GST) as it relates to the Compensation Product.
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2
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POLICY
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2.1
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The Goods and Services Tax legislation received Royal Assent on December 17,
1990. Effective January 1, 1991, the GST is applicable to various services for
public servants. Revenue Canada has advised that it is the sole responsibility
of the sponsor organization to determine whether the application of the GST is
required. Furthermore it is the responsibility of these organizations to apply,
collect and remit the GST.
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3
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PROCEDURES/INSTRUCTIONS
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3.1
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Presently, SSC, through its Regional Pay System withholds premiums at source
from a public servant's pay and remits these premiums directly to these
organizations. Should these organizations wish that SSC collect the GST on
their behalf, we will do so once they advise us of the revised premiums which
include the GST. SSC has requested the revised rate be provided by December 23,
1990, to ensure implementation for January 1, 1991.
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3.2
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Implementation of the Goods and Services Tax might be carried out in various
manners other than an automatic increase of premiums/deductions through the
Regional Pay System. As an example, the Treasury Board Secretariat of Canada
has issued instructions in the form of an Information Bulletin dated November
7, 1990 which details specific procedures on parking fees.
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3.3
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Please note that the current procedure of remitting premiums directly to
organizations will continue as SSC will not provide separate identification of
that portion of the premium which is relative to the GST.
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4
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INQUIRIES
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4.1
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Any queries on the foregoing may be directed by telephone to Advisory Services
Group, Jan Norris at (819) 956-2063 or Domenic Crupi at (819)
956-2047.
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Original Signed by
M.-J. Posen
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M.-J. Posen
Director General
Compensation Directorate
Government Operational Services
Reference: CJA 9007-6
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[Print Version]