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Offset of Taxes (GST/HST) Regulations (SOR/91-49)

Regulations are current to 2022-08-08 and last amended on 2019-03-04. Previous Versions

Offset of Taxes (GST/HST) Regulations

SOR/91-49

EXCISE TAX ACT

Registration 1990-12-18

Offset of Taxes (GST/HST) Regulations

P.C. 1990-2759  1990-12-18

His Excellency the Governor General in Council, on the recommendation of the Minister of National Revenue, pursuant to subsections 228(7)Footnote * and 277(1)Footnote * of the Excise Tax Act, is pleased hereby to make the annexed Regulations respecting reducing or offsetting the tax required to be remitted by the amount of a refund or rebate.

 [Repealed, SOR/2002-277, s. 18]

Interpretation

 In these Regulations,

Act

Act means the Excise Tax Act; (Loi)

coordinator

coordinator means the person designated pursuant to paragraph 5(a); (coordinateur)

direction

direction means a direction of a member pursuant to paragraph 5(d); (avis)

joint application

joint application means an application of all the members filed pursuant to paragraph 5(b); (demande conjointe)

member

member means a member of a closely related group; (membre)

revised application

revised application means an application filed pursuant to paragraph 5(h). (nouvelle demande)

Application

 These Regulations apply in respect of the tax required to be remitted under subsection 228(2) or (2.3) of the Act or paid under subsection 228(4) or Division IV or IV.1 of Part IX of the Act.

Prescribed Circumstances

 For the purposes of subsection 228(7) of the Act, the following are prescribed circumstances:

  • (a) the person who may reduce or offset the tax that is remittable and any other person who may be entitled to a refund or rebate under the Act are corporations; and

  • (b) the corporations referred to in paragraph (a) are members.

Prescribed Conditions

 For the purposes of subsection 228(7) of the Act, the following are prescribed conditions:

  • (a) the members have designated a member to be the coordinator for the purpose of filing, on behalf of the members, all joint applications, revised applications and information that is to be filed pursuant to these Regulations, returns to be filed pursuant to Subdivision c of Division V of the Act, and all applications and directions in respect of a rebate or refund under the Act;

  • (b) the coordinator files a joint application, in the prescribed form, by all the members in respect of reducing or offsetting the tax that is remittable by any member by the amount of the refund or rebate, or a portion thereof, that any other member is entitled to under the Act;

  • (c) a copy of the designation of the coordinator is filed with the joint application;

  • (d) the coordinator files, in respect of a reporting period, a direction of a member who is entitled to a refund or rebate under the Act directing that the refund or rebate, or a portion thereof, be applied to reduce or offset the tax to be remitted by any other member;

  • (e) the coordinator has received an acknowledgement from the Canada Revenue Agency that the joint application has been received;

  • (f) the reporting period for each member is identical;

  • (g) no member belongs to more than one closely related group that has filed a joint application or revised application and that has not filed a notice pursuant to clause 6(c)(ii)(C);

  • (h) where a corporation becomes a member after a joint application has been filed, the coordinator files a revised application, in the prescribed form, by all the members so that the corporation is included as a member for the purposes of these Regulations;

  • (i) where a revised application is filed, the coordinator has received an acknowledgement from the Canada Revenue Agency that the revised application has been received;

  • (j) subject to paragraph (k), the coordinator files together, in respect of a reporting period, all returns of the members that are to be filed pursuant to Subdivision c of Division V of the Act, all directions and all applications for a refund or rebate under the Act;

  • (k) where a revised application is filed in respect of a new member, the coordinator does not file any direction or return of the member or any application by the member for a refund or rebate under the Act unless the acknowledgement of the revised application is received; and

  • (l) the coordinator files a notice where a corporation ceases to be a member.

Prescribed Rules

 For the purposes of subsection 228(7) of the Act, the following are prescribed rules:

  • (a) a joint application shall contain information that establishes that each corporation that is an applicant is a member;

  • (b) a revised application shall contain information that establishes that a corporation referred to in paragraph 5(h) is a member;

  • (c) the tax remittable by any member may be reduced or offset by the amount of a refund or rebate, or a portion thereof, that any other member is entitled to under the Act in respect of any reporting period

    • (i) during or following which the acknowledgement referred to in paragraph 5(e) is received or, in the case of a revised application, in respect of either member, during or following which the acknowledgement referred to in paragraph 5(i) is received, and

    • (ii) before the earliest of any reporting period

      • (A) during which a corporation ceases to be a member,

      • (B) during which a member does not comply with the Act or these Regulations, or

      • (C) set out in a notice filed by the coordinator on behalf of the members, that the members no longer intend to offset or reduce the taxes of any member by the amount of a refund or rebate that another member is entitled to under the Act;

  • (d) a direction that is filed on behalf of a member shall only be followed where

    • (i) there is no tax that is remittable by the member, or

    • (ii) before following the direction, the tax remittable by the member is reduced or offset in accordance with subsection 228(6) of the Act by the amount of the refund or rebate to which that member is entitled under the Act;

  • (e) the coordinator shall file with the Minister

    • (i) any joint application or revised application,

    • (ii) in respect of a reporting period, any direction, return or application for a refund or rebate under the Act, together with a statement that sets out

      • (A) the tax to be remitted by each member, and

      • (B) the amount of the refund or rebate to which each member is entitled under the Act, and

    • (iii) in respect of a reporting period, together with the documents referred to in subparagraph (ii), a list that sets out

      • (A) the name of each member who is entitled to a rebate or refund under the Act and the contents of the member’s direction,

      • (B) the name of each member who may reduce or offset the tax remittable by a refund or rebate, or a portion thereof, in accordance with a direction and the amount by which the tax remittable is to be reduced or offset, and

      • (C) the order in which a refund or rebate is to be applied to reduce or offset the tax remittable in accordance with a direction, where the direction for reducing or offsetting the tax remittable is in respect of more than one member; and

  • (f) the coordinator shall remit, in respect of a reporting period, the amount of tax, if any, remittable by each member and, in respect of a member who reduces or offsets the tax remittable by a refund or rebate or a portion thereof, in accordance with a direction, the amount of tax remittable after that reduction or offset.

 
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