CRA indicates that it is applying GST/HST new rental property rebates as it is assessing developers for self-assessment tax
CRA indicated that its current procedures reflect ETA s. 228(6), which deems a developer’s net tax remittance for the reporting period in which there has been a self-supply by it of a newly-constructed residential complex, to have been paid to the extent of the new residential rental property rebate (NRRPR) amount claimed. Thus:
[T]he NRRPR should not be delayed as it would have been verified by the initial auditor and would not require a second review by our refund integrity or rebate processing programs. However, we are aware of some unintended results that may arise with our existing audit procedures and we will be reviewing these procedures to determine where improvements can be made.
CRA also reiterated its position that s. 296(2.1) only applies where a registrant has failed to claim (rather than claimed) a rebate – so that, for example, s. 296(2.1) could apply to require CRA to grant the NRRPR where it has assessed a developer for failure to self-assess.