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GST — summer camp teaching English as a second language was exempt

My client ran a summer camp for teenagers from Europe and Asia, who came to Canada to learn English over a period of a few weeks. Since the teens were too young to be responsible for their own accommodation, my client provided residential accommodation and supervision for them.

The instruction method was immersion: classroom instruction in the morning, and classes or activities in the afternoon in which the English learned was used in the context of the activities, and monitored and taught in a practical setting by the instructors. Over a 3-week course, there would be 54 hours of English instruction and 53 hours of immersion recreational and leisure activities, plus the accommodation.

Revenue Canada issued two (unasked-for) rulings to my client telling it that its fees were taxable, and then assessed my client for not collecting and remitting GST on its camp fees.

I filed a Notice of Objection, and explained in my submission to the CRA Appeals Officer that the summer camp package was a "single supply" whose dominant element was the teaching of English as a second language, which is exempt provided certain conditions are satisfied. I showed that all the conditions were met. Although summer camp is normally taxable, the essence of this particular summer camp was teaching English, not having a camp experience.

I also showed that another exemption, for child care, could apply to this situation, and even that the fees might be zero-rated as professional fees.

The Appeals Officer quickly agreed with my submission and allowed my client's objection.

Problem vanished!

(1998)