Canada Tax Court Issues Decision Clarifying Eligibility for Rebates of Erroneously Paid GST/HST

The Canadian Tax Court March 3 issued Decision No. 2026 TCC 39, clarifying eligibility for rebates of erroneously paid GST/HST. The taxpayer, a nursing home operator, applied for a rebate of GST/HST paid in error on rent. During an audit prolonged by the coronavirus pandemic, the Revenue Agency informed the taxpayer more than two years after the erroneous payment, that residential rental units are an exempt supply. The taxpayer filed a rebate application, which the Minister of National Revenue partially denied. On appeal, the Tax Court found that: 1) the rebate was time-barred because the taxpayer filed the rebate application ...