There are many ways in which operating a business can lead to unexpected HST/GST liability. Some examples include the following:

  • CRA may deny the taxpayer’s input tax credit rebate because the entity that charged the taxpayer the HST/GST provided an imperfect invoice or was not validly registered to collect HST/GST.
  • CRA may conclude that a taxpayer who is selling goods outside of its province did not properly apply the place of supply rules.
  • A real estate project may trigger the self-supply rules and CRA may question the value of the property at the time.

While these are tedious assessments, a detailed defence can have significant positive impacts on the taxpayer.