The registrant acquired personal property strictly for personal use, free of charge, by an employee or shareholder.
CRA indicated that if the primary personal-use test under s. 170(1)(c) applied, the registrant, if a corporation, would not be entitled to claim an ITC for its acquisition of the personal property, notwithstanding that s. “173(1)(c) generally allows the registrant to claim ITCs for the GST/HST that became paid or payable on the property”.
Furthermore, although the deemed use by s. 173(1)(c) of the property by the corporation in commercial activity would cause a subsequent sale by it of that property to be taxable, there was no provision in the ETA allowing an ITC in respect of the ITC previously denied unless the personal property was a passenger vehicle.
