CRA confirms its right to consequentially assess to reduce rebates if, following an objection or appeal, it reduces an ETA s. 191(3) assessment

We have published summaries of the questions posed at the 2021 CBA Commodity Taxes Roundtable and the full text of the CRA written responses (translated by us, where applicable).

Regarding Q.1, CRA confirmed that where an appeal of the builder against a CRA assessment under ETA s. 191(3) (showing an increased FMV of a new multiple unit residential complex at the time of first occupancy) resulted in that assessment being reduced or vacated, CRA has the authority (without regard to the usual time limitation periods) under ETA s. 298(6) to make a consequential reassessment to reduce the builder’s new residential rental property (“NRRP”) rebate (which also is affected by the building’s FMV).

Neal Armstrong. Summary of 25 March 2021 CBA Commodity Taxes Roundtable, Q.1 under ETA s. 298(6) and s. 301(1).