Subsection 232(1)
See Also
HMR Commissioners v Investment Trust Companies (in liquidation), [2017] UKSC 29
Using Lord Reed’s simplified facts, the invoice to an investment fund of its manager included VAT of £100 based on a UK VAT provision which was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Unjust Enrichment | investment funds had valid unjust enrichment claims against a supplier who had charged VAT on an exempt supply | 810 |
Administrative Policy
7 December 2016 Ruling 158637
After finding that a cancellation fee charged by a registered charity was not subject to GST/HST, CRA stated:
Under subsection 232(1), where a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 182 - Subsection 182(1) | no GST/HST on a fee charged for the cancellation of an exempt supply agreement | 156 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | contract cancellation fee not consideration for a supply | 113 |
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part V.1 - Section 1 | educational services not excluded | 23 |
Subsection 232(2) - Adjustment
Cases
North Shore Power Group Inc. v. Canada, 2018 FCA 9
The appellant (“North Shore”) entered into contracts in 2010 with Menova Energy Inc. for the purchase of solar panels, under which it paid...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 231 - Subsection 231(1) | no bad debt credit under s. 231 for a s. 232 credit which becomes bad | 157 |
See Also
The Advocate General (representing Revenue and Customs) v K E Entertainments Ltd (Scotland), [2020] UKSC 28
Customers of the taxpayer, which operated bingo clubs, paid a fee entitling the customer to take part in a number of games of bingo, forming a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | single composite price charged by taxpayer supported treating that price as consideration for a single supply of a bingo session rather than for multiple supplies of component games | 404 |
| Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(5) | finding a single correct method promoted consistent treatment of taxpayers | 447 |
| Tax Topics - Statutory Interpretation - Equal Treatment | a single lawful method of apportionment of consideration fostered principle of equal treatment | 158 |
Administrative Policy
21 December 2017 Ruling 157478
A registrant (the “Corporation”) entered into the Purchase Agreement with Retailer. Some of the sales of merchandise under the Purchase...
21 December 2017 Ruling 167830
Project Co. had an Agreement with a Joint Venture for construction of an Asset. Under the Agreement, the Joint Venture provides a Design and...
18 September 2017 Interpretation 176502
A registrant is reassessed for GST/HST that it did not charge on an invoice to a customer which declared bankruptcy prior to the reassessment and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 231 - Subsection 232(1.1) | credit not available for tax assessed on audit | 154 |
GST/HST Memorandum 12.2 [aka 12-2] "Refund, Adjustment, or Credit of the GST/HST under Section 232 of the Excise Tax Act" April 2008
Reduction in consideration must be given to original recipient re amounts already charged and must not relate to any action of the recipient
6. A...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 232 - Subsection 232(3) | 80 |
P-084R "Forgiven Debts Considered Bad Debts" 8 March 1999
[F]orgiven debts pursuant to an arrangement under the Companies' Creditors Arrangement Act are considered to be bad debts as opposed to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 231 - Subsection 231(1) | 48 |
Subsection 232(3) - Credit or Debit Notes
See Also
9267-9075 Québec Inc. v. The Queen, 2020 CCI 53
In 2012, a company (“9267”) sold domain names to another corporation (“9210”) that was owned equally by its individual shareholder and an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 231 - Subsection 232(1.1) | failure to remit GST on reporting a sale to an insolvent purchaser precluded a subsequent bad debt credit | 284 |
GEM Health Care Group Limited v. The Queen, 2017 TCC 13
A Canadian corporation (“GEM”) reduced, effective December 31, 2009, the quantum of management fees which it had previously charged to four...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(1) | no barter of management services for HST purposes between two affiliates employing the same key manager | 330 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Recipient | no barter of managment services between affiliates/construction supplies acquired by parent as agent for owner-subs | 196 |
| Tax Topics - General Concepts - Agency | construction supplies acquired by parent as agent for subsidiary owning the real estate | 390 |
North Shore Power Group Inc. v. The Queen, 2017 TCC 1, rev'd 2018 FCA 9
The appellant (North Shore) paid half (or approximately $3.0 million plus HST) of the purchase price for various solar array projects to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 168 - Subsection 168(9) | "deposit" for work being performed was not a deposit | 167 |
| Tax Topics - Excise Tax Act - Section 231 - Subsection 231(1) | only supplier can claim the credit | 186 |
Vivaconcept International Inc. v. The Queen, 2013 TCC 336
This case is summarized in greater detail under s. 231(1). In brief, the appellant claimed a bad debt credit under s. 231 with respect to the GST...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 231 - Subsection 231(1) | no requirement to pursue collection from insolvent company/write-off requirement satisfied | 325 |
Quinco Financial Inc. (formerly Landex Investments Company) v. The Queen, 2013 TCC 20, aff'd 2014 FCA 108
For income tax planning reasons, the registrant followed a practice of not claiming input tax credits ("ITCs") for a number of successive monthly...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 298 - Subsection 298(1) - Paragraph 298(1)(a) | statute-barring computation did not commence until residual ITCs claimed | 230 |
Dowbrands Canada Inc. v. The Queen, [1997] GSTC 85 (TCC)
The registrant, when it paid volume rebates to customers, was found by McArthur J to be thereby reducing the consideration on the previous sales...
Administrative Policy
14 February 2024 GST/HST Interpretation 231621 - Adjustment, credit or refund of tax charged or collected under Subdivision E of Division II
Where a non-resident supplier who is registered for GST/HST purposes under the “Electronic Commerce” rather than regular rules and charges...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 211.17 - Subsection 211.17(2) - Paragraph 211.17(b) | a non-resident registered under the E-Commerce provisions can follow the ETA s. 232 refund procedure if the resident recipient demonstrates that it was registered | 262 |
GST/HST Notice 322, Recovery of the GST/HST Under the Digital Economy Measures, April 2022
Requirement under s. 211.14(1) for specified non-resident supplier to charge GST/HST to unregistered recipients
There is a general requirement...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 211.17 - Subsection 211.17(2) - Paragraph 211.17(2)(a) - Subparagraph 211.17(2)(a)(i) | 297 |
25 February 2016 CBA Roundtable, Q.8
In P-149R, CRA states that it generally will not assess a prior GST/HST return at the request of the registrant to the extent this will result in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 296 - Subsection 296(1) | CRA “flexibility” to assess a prior return to allow an unclaimed s. 232 rebate credit | 199 |
8 July 2013 Interpretation Case No. 145134
In Scenario 1, Corp A, a registrant, makes a taxable supply of tangible personal property to Corp B, also a registrant. On a subsequent refund of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 181.1 | s. 232 trumps s. 181 in direct supplies | 187 |
GST/HST Memorandum 12.2 [aka 12-2] "Refund, Adjustment, or Credit of the GST/HST under Section 232 of the Excise Tax Act" April 2008
20. ...If the refund, adjustment, or credit of the tax relates to more than one invoice, the note should indicate the dates of the first and last...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 232 - Subsection 232(2) | 190 |
5 February 2013 Ruling Case No. 141852
Company A (a Canadian-resident registrant) sells crude oil for its market value to Company B (its U.S.-resident affiliate and also a registrant),...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part V - Section 15.2 | 158 | |
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(3) | 195 |
28 November 2011 Interpretation Case No. 137792
In response to a question as to whether s. 232 applies where the Corporation (which is a registrant) engaged in the resale of tangible personal...
16 December 2005 RITS No. 76598
CRA would accept a reduction of consideration and corresponding tax adjustment shown on an invoice as meeting the Credit Note and Debit Note...
Articles
Sheila Wisner, "Imported Services Price Adjustments - Uneven Ground", Canadian GST Monitor, March, 2009, No. 246, p. 1.
Paragraph 232(3)(a)
Administrative Policy
Excise and GST/HST News - No. 108 September 2020
Brief description of the CECRA program
Under the CECRA program, CMHC will provide an unsecured forgivable loan to an eligible commercial property...
23 March 2017 CBA Commodity Taxes Roundtable, Q.19
CRA indicated that where an invoice has named the wrong person as the recipient of a taxable supply, this can be corrected by obtaining an amended...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Input Tax Credit Information (GST/HST) Regulations - Section 2 - Supporting Documentation | invoice addressed to the wrong person can be corrected for GST/HST purposes with a letter confirming this | 244 |
Paragraph 232(3)(c)
See Also
Greenfield Mining Services Inc. v. Agence du revenu du Québec, 2020 QCCQ 2869
Greenfield sued a junior Quebec mining company (“CRI”) for unpaid fees of around $15 million and, after 30 months of unfruitful legal...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 231 - Subsection 231(1) | registrant had established an honest and reasonable belief that it would not recover more than the written-down amount, with s. 232 not being relevant | 312 |