15 August 2002 GST/HST Interpretation 38785[1] - Code 8 General Rebate - Original Documentation Requirement

Dear XXXXX:

Thank you for your letter of XXXXX regarding a request for a waiver on the submission of original documentation in regards to code 8 general rebates.

Interpretation Requested

In your letter you suggest that with the implementation of a two-year time limit along with the existing requirement to file original documents there is now a conflict with the requirement by Department of Indian & Northern Affairs (DIAND) to have Indian bands retain their records for a period of three years.

In light of DIAND's requirement to keep records on file for three years you would like to see CCRA waive its requirement to have original documentation sent in with the code 8 general rebates.

Interpretation Given

Under the general rebate application, code 8 allows an Indian band, tribal council or band-empowered entity (BEE) to recover the GST they paid for purchases of off-reserve transportation, short-term accommodation, meals and entertainment that relate to band management activities, or for real property on reserve.

Appropriate documentation is a condition of code 8 rebates as it is important to ensure entitlement to the rebate and accuracy of payment. CCRA realizes that some Indian bands or BEE may not find it practical to submit original documentation with their rebate claim. In recognition of this CCRA allows Indian bands to make a request in writing to approve a waiver request and allow the Indian band to retain the original documents on file. In making a request for a waiver an Indian band agrees to allow CCRA the right to review its records. The letter of request for waiver also requires an estimate of the amount of annual purchases subject to rebate along with the expected frequency for filing rebate applications. Once a request has been approved the approval is kept on file therefore the Indian band need only to make the request with CCRA once.

To simply grant a blanket waiver of the requirement to file original documentation would compromise the ability of CCRA to determine the entitlement to the rebate and accuracy of payment.

In your letter you raise a valid argument that there may not be any time limit to apply for a rebate, as the tax relief is not administered under the Excise Tax Act (ETA). CCRA has considered this point, however it is our view that the correct interpretation is that the time limit does apply as the general rebate is administered under section 261 of the ETA.

You have also raised the point that not all the rebates on the general rebate application form have a standard two-year time limit. The example provided indicates that reason code 5, Legal Aid Plan, allows for a 4-year time limit. However, it must be noted that the rebate for a legal aid plan is administered under a separate provision namely, section 258 of the ETA, which specifically provides for a 4-year time limit.

The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the Canada Customs and Revenue Agency with respect to a particular situation.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-9264.

Yours truly,

Cindy Christmas
Aboriginal Affairs Unit
Public Service Bodies & Government Division
Excise and GST/HST Rulings Directorate

c.c.: