News and Insights

CRA GST/HST Info Sheet GI-123

Tax Development Oct 17, 2011

This new info sheet provides information on the application of GST/HST to supplies of residential group care services and residential foster care services provided in the province of Ontario.  A business making the supply of a residential group care service or a residential foster care service is referred to as a “Resource” in the info sheet.  A residential group care service is the provision of boarding, lodging and associated supervisory, sheltered or group care provided directly to a child, or individual with a disability, away from the home of the child or individual’s parent in a building, group of buildings or part of a building, where adult staff are employed by the Resource (group home operator) to provide care for children, or individuals with a disability, on the basis of scheduled periods of duty.

The Excise Tax Act provides an exemption from GST/HST for the supply of a service of providing care, supervision and a place of residence to children, underprivileged individuals or individuals with a disability in an establishment operated by the supplier for the purpose of providing such services.  The info sheet describes an example of a residential group care service that would qualify for the GST/HST exemption.  An example is also discussed for care provided in a foster home that is owned by foster parents.  Typically, the latter type of care would not qualify for the GST/HST exemption, as the foster home is not an establishment operated by a Resource.  

CRA GI-123