In CIBC World Markets Inc. v. Canada, the Federal Court of Appeal held that the Excise Tax Act allows a goods and services tax (GST) registrant to make a second claim for input tax credits using a different method than that used for a prior claim concerning the same taxation year. Stratus J.A., writing for the court, found that while there are no words in the GST provisions of the Act that expressly allow a GST registrant to make such a claim, the general scheme and purpose of the GST provisions and the lack of statutory wording to the contrary support the possibility.
Justice Stratus noted that not only are there no words in the Act which prohibit more than one claim for input tax credits concerning the same taxation year, but that s. 225(3) specifically contemplates such a possibility. He held that while the objective of “fiscal certainty” would favour only allowing for one claim, this objective is not one that suffuses the entire Act. In fact, many sections work against such finality or “fiscal certainty.”
Finally, Justice Stratus decided that using a revised method is not contrary to s. 141.01(5) because the subsection merely requires consistency throughout the entire year once a method is chosen. It prevents using one method at one part of the year and another method at another part of the year. He concluded that this interpretation was consistent with the plain meaning of the Act.
September 30, 2011
Link to Decision
Mark Carter, Leo Elias & Marc Gibson
*
No comments:
Post a Comment