11690-1 (gjor)
March 9, 1995 XXXXX
This is in response to your memorandum dated March 7, 1995, requesting our comments on the two GST notices submitted for our review. We have also reviewed two additional notices that you submitted to Dave Caron. Those two are also enclosed. XXXXX Our comments are made directly on the copies as requested. We understand that the cancellation notice is sent as a result of requests for cancellation from small suppliers where subsection 242(2) of the Act is applicable, whereas the notice of pending cancellation is sent as a result of all other requests where subsection 242(1) is applicable. In other words when a request is received from a small supplier, cancellation is immediate providing the person meets the requirements of subsection 242(2) of the Act and cancellation is held up pending filing requirements for all others.
Since the two notices contain mostly the same information, i.e., paragraphs 2 and 3, we suggest the same wording be used in both.
With regard to the cancellation notice, we would suggest that you get further comments from the Input Tax Credit Unit with respect to the statement that inventory is deemed to be sold on cancellation of registration. While this statement is not wrong, the provisions of subsections 171(3) and (4) of the Act go further than inventory.
If additional information is required, please contact Gerry O'Reilley at (613) 954-4397. XXXXX
Mitch Bloom
Manager
Taxing Provisions Unit
General Tax Policy
Policy and Legislation
Excise/GST XXXXX sign-off: Mitch Bloom
| c.c.: |
Imposition Team XXXXX |
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