Tele-Mobile - Federal Court of Appeal finds that the mere "opportunity" of the customer to calculate the GST in a rebate is insufficient for the supplier to claim ITCs

A registrant who pays a rebate in respect of a taxable supply previously made by it in Canada generally is entitled to an input tax credit on the applicable fraction of the rebate provided that it "therewith provides a written indication that a portion of the rebate is an amount on account of tax" (s. 181.1(c)).  Mainville JA stated that this requirement is not satisfied if the relevant document merely provides an unambiguous "opportunity" to calculate the GST component of the rebate (as had been suggested obiter by Campbell Miller J).  Instead, an "actual written indication" specifying the tax or stating that the rebate includes the tax, is required.

Scott Armstrong.  Summary of Tele-Mobile Company Partnership v. The Queen, 2013 FCA 149, under ETA ss. 181.1 and 181(1).