Hi-Tech – Tax Court of Canada confirms that the required ITC documentary information can be spread among different supporting documents

Sommerfeldt J dealt with a situation where an audit fee paid in various payments by a GST registrant had problematic documentation. In denying an input tax credit to the registrant on various grounds, he noted that supporting documentation “may be contained collectively in multiple documents” rather than, say in a single invoice.

Respecting the distinction drawn between 3(a)(ii) of the Input Tax Credit Information (GST/HST) Regulations, which requires that where an invoice is issued, it must give the invoice date, and s. 3(a)(iii), which provides that where there is no invoice, the supporting documentation must provide the date on which the GST/HST is paid or payable, he stated (after noting a claim by the registrant that it had not received the invoice):

[I]n order to issue an invoice, not only must the invoice be created, but it must also be sent to the client or customer.

Although not needing to land on this issue, he indicated that there may have been undue delay for purposes of the rule in ETA .s 152(1)(b) (effectively deeming consideration to have become due when its invoicing is unduly delayed) even if the audit firm had “issued” the invoice, given that the invoice date was six months after the completion of the audit work – whereas normally invoices were issued much more promptly.

Neal Armstrong. Summaries of International Hi-Tech Industries Inc. v. The Queen, 2018 TCC 240 under Input Tax Credit Information (GST/HST) Regulations, s. 3(a)(ii), s. 169(1) and ETA s. 152(1)(b).