Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 147237
Dear [Client]:
Subject: GST/HST RULING
Request to allow late filing of subsection 225.2(4) election
Thank you for your letter concerning the eligibility of […] (the SLFI) to late file the subsection 225.2(4) election. We apologize for our delay in responding.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
A review of your request indicates the following:
1. […] (the Supplier) and the SLFI are closely related companies that have had a section 150 election in place since [yyyy].
2. Both the Supplier and the SLFI were registered for GST/HST up until [mm/yyyy], when the Supplier’s GST/HST registration was cancelled in error. In [yyyy], the error was corrected and the Supplier’s registration was retroactively reinstated effective [mm/dd/yyyy].
3. In our prior letter of [mm/dd/yyyy], […], we ruled that the cancellation of the Supplier’s GST/HST registration did not cancel the election under section 150 since the Supplier would have been required to be registered (was a registrant) throughout the period in question.
4. The SLFI has a [mm/dd] year end for GST/HST purposes, and files its GST/HST returns annually. It has been a selected listed financial institution since before [yyyy].
5. The Supplier and the SLFI filed Form GST497, Election Under the Special Attribution Method for Selected Listed Financial Institutions and Notice of Revocation, in [mm/yyyy], to make an election under subsection 225.2(4) to be effective [mm/dd/yyyy], which has been processed by the Canada Revenue Agency (CRA) and the SLFI has filed its [yyyy] GST494 return accordingly.
6. On [mm/dd/yyyy], the Supplier and the SLFI filed Form GST497 for the fiscal year [mm/dd/yyyy] to [mm/dd/yyyy]. They also filed GST497 forms for each of the years [yyyy-yyyy] on [mm/dd/yyyy].
7. The SLFI filed Form GST494, Goods and Services Tax/Harmonized Sales Tax Final Return for Selected Listed Financial Institutions, for the year [yyyy] but the amounts it added into Element A of the special attribution method (SAM) formula with regard to property or services provided by the Supplier to the SLFI were not calculated using a cost-based method. The [yyyy] GST494 return was filed [mm/dd/yyyy], prior to our previous ruling being issued.
8. The GST494 returns for the SLFI for the previous years were filed as follows:
[yyyy] - The GST494 return was filed in [mm/yyyy]
[yyyy] - The GST494 return was filed in [mm/yyyy]
[yyyy] - The GST494 return was filed in [mm/yyyy]
9. On [mm/dd/yyyy], the Supplier and the SLFI requested that the Minister of National Revenue (Minister) exercise her power under subsection 225.2(5) to accept the subsection 225.2(4) election between the Supplier and the SLFI for the [yyyy, yyyy, yyyy] or [yyyy] fiscal years.
Having considered the information above, it has been determined that the Minister will not accept the election under subsection 225.2(4) between the Supplier and the SLFI for the [yyyy, yyyy, yyyy] or [yyyy] fiscal years.
As you are aware, pursuant to subsection 225.2(5), the election under subsection 225.2(4) must be filed by the SLFI with the Minister in prescribed manner on or before:
a) the day on or before which a GST/HST return for the reporting period of the SLFI in which the election is to become effective is required to be filed; or
b) any later day that the Minister may allow.
Based on the facts set out above, the due date for the SLFI to file a subsection 225.2(4) election to be applicable to its [yyyy] fiscal year was [mm/dd/yyyy], which was the day its GST494 return for the year [yyyy] was required to be filed. This election was filed on [mm/dd/yyyy]. Elections applicable to its [yyyy,yyyy], and [yyyy] were also filed on [mm/dd/yyyy].
GST/HST Policy Statement P-250, Late-Filed Subsection 225.2(4) Elections, provides guidelines with respect to when the CRA will accept late-filed subsection 225.2(4) elections. A request to late file a subsection 225.2(4) election will be considered on a case-by-case basis within the context of these guidelines. For example, the guidelines provide that a late-filed subsection 225.2(4) election will not be accepted where, as of the effective date of the election, the parties to the election have not been consistently operating as if the election were in effect, or where, as of the date of the request to accept a late-filed election, not all GST/HST returns that are due by the selected listed financial institution have been filed.
If you require clarification with respect to any of the issues discussed in this letter, please call me at 613-952-9248.
Yours truly,
Marcel Boivin, Director
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate
Email this Content