ARCHIVED Services Pay Directive: 1991-004 (03)
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January 17, 1991
SUBJECT: Goods and Services Tax
1.1 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.
2.1 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.
3.1 Presently, Supply and Services Canada (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.
3.2 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.
3.3 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.
4.1 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.
Original Signed by
Government Operational Services
Reference: CJA 9007-6
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