CRA confirms and extends its administrative tolerance for failures to report HST on real estate purchases

CRA has a policy of administrative tolerance to not assess interest and penalties where an HST registrant which is exclusively engaged in commercial activities neglects to self-assess itself for HST on a real estate purchase and claim the off-setting input tax credit.  CRA has now confirmed that it generally will follow the same approach where the ITC claim has become statute-barred.

Neal Armstrong.  Summary of CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 31. (available with membership password at http://www.cba.org/CBA/sections_NSCTS/main/GST_HST.aspx) under ETA – s. 228(4).