CRA indicates that it would be “fair” for it to adjust the new residential rental property rebate when assessing under ETA s. 191(3)

CRA is assessing to increase the amount of GST/HST self-assessed by a builder under ETA s. 191(3) on substantial completion and first occupancy of a rental residential complex. What should be done where there should be a corresponding increase to the amount of the new residential rental property rebate given this higher FMV?

CRA noted that it was not required under s. 296(2.1)(b) to grant the rebate - because this provision did not apply where a rebate application had been filed. Furthermore, the making of a fresh rebate application was prohibited by s. 262(2). However, CRA indicated that, as a matter “of service and fairness, it would be appropriate for the auditor” to adjust the rebate, provided the period was not statute-barred.

Neal Armstrong. Summary of May 2019 CPA Alberta CRA Roundtable, GST Session – Q.10 under ETA s. 256.2(7).