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Interpretation Letter 09-0030, May 2009
We refer to your letter dated XXXXXX, requesting an interpretation on the definition of eligible employers who qualify for the Employer Health Tax (EHT) exemption, with respect to Corporation A.
Under the EHT Act, "eligible employer" includes an employer that is not,
The Schedule to the Social Contract Act, 1993 under Clause 1, defines a public sector employer to include:
From the information you provided, we understand that:
Based on the information provided, it is our opinion that the directors of Corporation A's Board are appointed under the authority of the corporation of a municipality (the City of XXXXXX) as described in clause 1(b) of the Social Contract Act, 1993. Corporation A is considered to be a member of the public sector. As a result, Corporation A is not an eligible employer for EHT purposes, and therefore is not eligible for the tax exemption.