CRA rules that GST applies to administrative services provided by Regional District to Regional Hospital Districts

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The CRA recently confirmed its view that administrative services provided by a Regional District to a Regional Hospital District are subject to GST. The CRA ruling turned on the fact that a regional hospital district does not perform any governance functions and is therefore not a municipality for GST purposes. Without that status, the administrative services provided by the regional district to the regional hospital district do not fit within a GST exemption.