Meaning of matter
Does “matter” refer to a claim period or the substance of what is being claimed? CRA stated:
[W]e consider what would give rise to the particular rebate being applied for; in other words, what is the object or matter of the rebate. … In general, any eligible rebate under Division VI will be for all or part of the tax paid or payable in respect of a particular transaction or deemed supply… .
CRA referred to the statement in Fanshawe College, 2006 TCC 652, at para. 58 (foll’d Ottawa Hospital, 2010 TCC 53) that “The word "matter" in section 262…relates to a transaction” – but then stated:
There are instances where a particular transaction can give rise to more than one rebate. As such, there may be two objects (or matters) of reimbursement in respect of a single transaction but there may only be one rebate application for each object or matter. For example, a person may be eligible to claim a new housing rebate for the federal part of the HST payable in respect of new housing as well as a new housing rebate for the provincial part of the HST payable… .
When a PSB rebate amount is claimed in an incorrect claim period, can CRA reassess and reduce the claim period it was incorrectly claimed in and process a reassessment to add the amount into the correct period? CRA responded:
The legislation, as it currently reads, does not allow a person to file a second PSB rebate application under section 259 for the same claim period to claim missed amounts or to claim differences due to misstated amounts in the initial application [for the prior claim period]. However, CRA could exercise its discretion and reassess the prior rebate claim to add the amount to the PSB rebate claim for the correct claim period.
Alternatively, an applicant can file an objection to the assessment of its initial rebate application requesting that a missed amount be allowed and/or an adjustment be made for a misstated amount. If the time limit for objecting has passed, the person can write in and ask for a reassessment of the rebate claim for the particular claim period. …
As another example, a selected PSB filed a rebate application claiming a PSB rebate of 50% of the non-creditable tax charged in respect of a particular transaction for a particular claim period. It then considers that it could have claimed a rebate of 83% of that non-creditable tax charged and files a second rebate application to claim the 33% difference for that claim period. Under subsection 262(2), the selected PSB is prohibited from filing a second PSB rebate claim for the difference of 33% in respect of that same matter and is also prohibited from filing a second rebate application for the same claim period under subsection 259(6). As noted above, the person can object to the assessment of the initial rebate or ask for a reassessment of that rebate to recover the 33% (if eligible).