Systematix Technology (2006 TCC 277, aff’d 2007 FCA 226) stated: “there must be a registration number assigned to the supplier in conformity with subsection 241(1) is the time of the supply or, at the latest, the time of the filing of the return.” SNF L.P. held that an ITC cannot be claimed for GST/HST that was paid to a supplier whose registration number was cancelled as of the sale date. When must the registration number be valid? Before referencing its GST/HST Registry, CRA stated:
Generally, the registration number assigned to the supplier must be valid at the time the tax in respect of the supply becomes payable by the recipient or is paid by the recipient without having become payable. This is consistent with when the ITC of the recipient first arises under subsection 169(1) of the ETA, and when the tax becomes collectible or is collected by the supplier. The requirement under paragraph 169(4)(a) and the Input Tax Credit Information (GST/HST) Regulations to obtain the GST/HST registration number assigned to the supplier is intended to substantiate that the supplier is validly registered for purposes of claiming the ITC.
However, CRA stated:
[U]nder subsection 169(5), the Minister is given discretionary power in certain circumstances to exempt a specified registrant, a specified class of registrants, or registrants in general from the documentary and information requirements stated in subsection 169(4), if the Minister is satisfied that there is, or will be, sufficient evidence to establish the particulars of a supply and the tax paid or payable in respect of the supply. The Minister may also specify the terms and conditions for applying such an exemption.
