CRA indicates that a Notice of Intent under the E-Commerce GST/HST rules is a CRA, not a taxpayer, tool

ETA s. 211.12(5) provides that where CRA has reason to believe that a non-resident has failed to register under the “simplified regime” provided under the E-Commerce subdivision, it may send a “notice of intent” to the non-resident signifying its intention to require that person’s registration, but providing a brief opportunity to make representations. In response to an inquiry as to whether a non-resident could request a notice of intent in order to get registered under the simplified regime on a prospective basis and avoid the risk of CRA investigating and making the registration effective to the effective date of the new regime, CRA indicated that this was misconstruing the purpose of the notice of intent. It stated:

[T]he Notice of Intent … is a compliance tool to be used at the disposal of the CRA; it is not taxpayer-initiated. Subsection 211.12(5) permits the Minister to send written notice (Notice of Intent) to any person who the Minister believes is required to be registered, but has failed to register as and when required. A person who is required to be registered and receives a Notice of Intent is required to register under subsection 211.12(3).

Neal Armstrong. Summary of 7 April 2022 CBA Roundtable, Q.13 under s. 211.12(5).