Subsection 263.01(1)
Administrative Policy
16 May 2024 GST/HST Interpretation 224829 - GST/HST reporting related to a deemed supply of a multiple unit residential complex by a selected listed financial institution
A selected listed financial institution (SLFI), which is the builder of a multiple unit residential complex (MURC) situated in Ontario and a MURC situated in a non-participating province, is deemed to have made and received a taxable supply by way of sale of those MURCs. Regarding the application of the special attribution method (SAM) formula in s. 225.2(2), CRA indicated the SLFI is not entitled to the Ontario new residential rental property (NRRP) rebate pursuant to s. 47(3) of the New Harmonized Value-Added Tax System Regulations, No. 2 in respect of the Ontario tax on the self-supply under s. 191(3) of the Ontario MURC, by virtue of the prohibition in s. 263.01(1) against paying a rebate of provincial HST to a SLFI.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 225.2 - Subsection 225.2(2) | application of the SAM formula to a self-constructed MURC | 190 |
19 January 2019 Interpretation 165888
CRA allowed a rebate claim of ACo (a SLFI) for amounts of federal tax paid in error. No provincial HST was refunded based on the understanding that the s. 263.01 restriction applied.
Headquarters indicated that the s. 123(1) definition of tax “is interpreted by it to include only amounts of tax that are actually payable under Part IX, such as tax under subsections 165(1) and (2),” so that “an amount paid in error as or on account of tax is not tax for GST/HST purposes. After finding on this basis that the rebate amount should not be included in s. (iii) of G2 of s. 46(a) of the Selected Listed Financial Institution Attribution Method (GST/HST) Regulations (SLFI Regulations) in determining Element G of ACo’s special attribution method (SAM) formula calculation, Headquarters went on to find that s. 263.01(1) was inapplicable in this situation, stating:
Given the definition of the word tax in subsection 123(1) and the use of the phrase “an amount is in respect of tax” in subsection 263.01(1), the restriction in that subsection would not apply to the rebate of an amount paid in error as or on account of tax by a person that was an SLFI at the time the amount was paid.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations - Section 46 - Paragraph 46(a) - Element G - Subparagraph (iii) | refund of tax paid in error not included in refunded tax referred to in G | 240 |
| Tax Topics - Excise Tax Act - Section 225.2 - Subsection 225.2(2) | tax paid in error not included in A and F of formula | 287 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Tax | tax does not include tax paid in error | 104 |