CRA no longer is scuppering supplier GST/HST rebate applications through automatic assessments

CRA has confirmed that since April 2011 it no longer has been following a practice (prevailing during the previous four years) of assessing GST or HST returns even where there was no adjustment and there was payment with the return of the net tax shown as owing.  As also noted by CRA, the effect of assessing a return is that the registrant is precluded from filing for a rebate of tax remitted in error in that month (e.g., where more tax was remitted than charge to its customers) - and the registrant must instead file a timely notice of objection or apply for a reassessment under s. 296(1).

Neal Armstrong.  Summary of 2 September 2011 Interpretation 137200 under ETA s. 261(2).