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Input Tax Credits

Archives - December 2017

Posts tagged "Input Tax Credits"
  • High-Crest v. R. – TCC:  Taxpayer not entitled to ITC’s
    Dec 11, 2017 By Bill Innes

    Précis: The taxpayer operated a nursing home in Springhill, Nova Scotia. Most of the beds were underwritten by the Nova Scotia Department of Health (“NS Health). The taxpayer agreed with NS Health to build an extension for 20 additional beds. It received payments from NS Health that were to be used both for construction and to provide services to the residents of the facility. Since the taxpayer did the construction work it was regarded as a self-supply. It claimed input tax credits based on the value of the completed property. The input tax credits exceeded the amount of the output tax reported by the Appellant on the self‑supply. CRA denied the claim on the basis of section 191.1 of the Excise Tax Act which “prevents an overall net tax refund on the self‑supply by increasing the value of the addition for the purpose of computing the tax on the self‑supply” [para. 10]. The amount at issue was roughly $300,000.
    High-Crest v. R. – TCC: Taxpayer not entitled to ITC’sREAD MORE »