CRA is equivocal about grandfathering those hurt by a retroactive change in its GST policy on gift certificates

CRA without warning retroactively (back to 1991) changed its Policy Statement respecting gift certificates which did not bear a specific dollar amount, so that GST was applicable not when the gift certificates were sold but instead when they were subsequently redeemed. This could result in double taxation of registrants who relied on the old Policy. Rather than simply saying that such registrants are grandfathered, CRA stated that "Audit will exercise discretion if it encounters situation in which a registrant has been acting in accordance the [old] Policy Statement."

Neal Armstrong. Summary of CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 35. ("Gift Certificates") (available with membership password at http://www.cba.org/CBA/sections_NSCTS/main/GST_HST.aspx) under ETA – s. 181.2.