20 December 1995 GST/HST Interpretation 1995-12-20 - Non-resident Registration

Dear Mr. XXXXX

I refer to your letter of October 25, 1995, and your meeting with members of my staff on November 16, 1995, concerning your client XXXXX and the claiming of input tax credits (ITCs) for non-resident companies that registered voluntarily.

My understanding of the underlying issue is that your client, XXXXX registered voluntarily effective January 1, 1991, and the Department subsequently deregistered v because the company did not meet the legislative requirements for registration. Since XXXXX was not considered to be a registrant, there was no entitlement to ITCs for the GST expenses incurred and the ITCs claimed must be repaid. You have requested that the repayment be cancelled based on your understanding of our policy in this area from an oral exchange at a meeting in January 1995 between the XXXXX and my Directorate.

At the meeting with my staff, you were informed of the legislative constraints to your request. My understanding is that you now recognize that your request cannot be approved on a legislative interpretation and you are now asking that it be approved on a principle of equity and administrative tolerance. Such action would fall under the purview of the Verification, Enforcement and Compliance Research Branch of the Department. Accordingly, I have taken the liberty of forwarding a copy of your correspondence on this case to that Branch for direct response.

If you require any further information regarding the policy in this area, please contact Michael Matthews of my staff at (613) 952-8806.

Yours sincerely,

W.K. McCloskey
Director General
GST Rulings & Interpretations Directorate
Policy and Legislation Branch

GAD 2551 (GEN)

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