Subsection 211.12(2)
Administrative Policy
Excise and GST/HST News - No. 110, 8 December 2021
Digital economy
After referring to the introduction by the 2021 Budget of “GST/HST measures that related to the digital economy,” CRA stated:
As discussed in the Excise and GST/HST News No. 109, affected businesses and platform operators are expected to comply with their obligations to register, collect and remit the GST/HST as set out under the new rules and legislative provisions to ensure that the GST/HST applies effectively and fairly to e-commerce transactions. As announced in Budget 2021, the CRA will work closely with affected businesses and operators to assist them in meeting their obligations. Where such businesses and operators show that they have taken reasonable measures but are unable to meet their new obligations for operational reasons, the CRA will take a practical approach to compliance and exercise discretion in administering the measures during a 12‑month transition period, starting July 1, 2021.
Before the CRA exercises its discretion in the administration of the new measures, an affected business or platform operator must first make a submission to the CRA requesting forbearance and obtain the CRA’s written approval that such discretion will be exercised. Submissions may be made to the CRA after July 1, 2021, until further notice.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | commercial businesses can make GST-exempt arranging-for supplies of insurance as a sideline “incidental” activity | 301 |
| Tax Topics - Other Legislation/Constitution - Federal - Indian Act - Section 87 | relief where there is an on-reserve purchase with a non-Indian co-owner | 180 |
Excise and GST/HST News - No. 109, June 28, 2021
After providing a general overview of the legislative proposals (to generally take effect on July 1. 2021) regarding cross-border digital products and cross-border services, goods supplied through fulfillment warehouses in Canada, and platform-based short-term accommodation, CRA stated:
Where the affected businesses and platform operators show that they have taken reasonable measures to comply but are unable to meet their new obligations for operational reasons, the CRA will take a practical approach to compliance and exercise discretion in administering these measures during a 12-month transition period, starting July 1, 2021.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Public Service Body Rebate (GST/HST) Regulations - Section 3 - Subsection 3(1) - Paragraph 3(1)(a) | CEWS not included in total revenue or in government assistance | 236 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | CRA will follow Zomaron on the same facts (re GST/HST exemption for signing up merchants for credit card processing) | 338 |
Subsection 211.12(5)
Administrative Policy
7 April 2022 CBA Roundtable, Q.13
Where a non-resident service provider wishes to register for GST/HST under the “simplified regime” but does not wish to submit a registration request pursuant to s. 211.12(3) out of fears that CRA may back-date the registration to July 1, 2021, what procedures can non-residents pursue to receive a notice of intent from CRA to register them pursuant to s. 211.12(5)? CRA disagreed with the premise of this question, stating:
With respect to the Notice of Intent provision under subsection 211.12(5), it should be noted that it 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).