CRA will try to ignore Miedzi Copper re holding company ITCs

In Miedzi Copper, a holding company whose only significant activity was financing its Lux sub which, in turn, financed exploration companies in Poland, was entitled under ETA s. 186 to full input tax credits for the GST on all the fees charged to it by its executives (who were independent contractors rather than employees) and by professional firms. When asked about Miedzi Copper (and the predecessor Stantec case, which CRA also lost), CRA stated:

Our position on the interpretation of section 186 has not changed. … We will apply the Court’s decision in Miedzi Copper [and Stantec] where the situation has the same facts as that case.

Neal Armstrong. Summary of May 2016 Alberta CPA Roundtable, GST Q.14 under ETA s. 186(1).