18 July 1994 GST/HST Interpretation 1994-07-18[2] - Administrative Tolerance on the Late Filing of the GST

Dear XXXXX:

This is in reply to your March 22, 1994 letter forwarded to me by our XXXXX with regards to administrative tolerance on the late filing of the Goods and Services Tax (GST) Election form Supply of Business Property (GST 44).

Administrative tolerance is generally provided where an election form is not filed if there is evidence that the person was eligible and acted as if the election had been filed on time. The granting of tolerance is not automatic and each situation is reviewed on a case by case basis. If a person should have known that the election form was to be filed, (i.e. a departmental letter on the matter or advice from a tax professional in the registrant's file) an assessment may be issued for the tax not collected plus penalty and interest.

In regard to the waiving of penalty and interest if the tax is assessed, you are referred to the attached 500-3-2-1 entitled Cancellation or Waiver of Penalties and Interest which outlines the situations where penalty and interest may be waived or cancelled.

The forgoing comments represent our general views with respect to the subject matter of your letter. Unannounced proposed or future amendments to the legislation may result in changes to our interpretation. These comments are not rulings and, in accordance with the guidelines set out in GST Memorandum 100-3, do not bind the Department with respect to a particular situation.

If you have any further questions or require clarification, do not hesitate to contact XXXXX.

Sincerely,

H.L. Jones
Director
General Tax Policy
Excise/GST

            XXXXX