21 March 2003 GST/HST Interpretation 44857 - Time Limit For Filing Rebates Per Subsection 261(3)

This memorandum is in response to an e-mail sent to Dave Caron of the Aboriginal Affairs Unit XXXXX.

Information Requested

You have enquired as to the correct application of subsection 261(3) of the Excise Tax Act (ETA) as it applies to Type 1 rebates filed by Indian bands. Specifically, you are asking if the time limit for filing is two years from the date of having paid the tax or two years from the date the tax became payable.

Subsection 261(3) of the ETA states "that a rebate in respect of an amount shall not be paid to a person unless the person files an application for the rebate within two years after the day the amount was paid or remitted by the person".

You have specifically asked about the time frame for filing a rebate by Indian bands. However, please note that the following applies to all applicants, Indian bands included, as subsection 261(3) of the ETA does not apply only to Indian bands.

An applicant filing a GST/HST general rebate claim under subsection 261(3) of the ETA has two years from the date the tax was paid to file a rebate. The date of an invoice that has been issued is not necessarily the same date the tax was paid. Where the tax was paid on the same day the invoice was issued, the invoice date just happens to be the same as the date the tax was paid. However, applicants are eligible under subsection 261(3) of the ETA to include in the rebate tax that has been paid within the two year time limit of filing, not two years from the date tax was payable.

If you require additional information, please do not hesitate to contact me at 613-954-7954.