Offset of Taxes (GST/HST) Regulations

6 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

  • (i) any joint application or revised application at the Regional or District Excise Office at which the coordinator is registered,

  • (ii) with the Minister at the Excise Processing Center 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) with the Minister at the Excise Processing Center 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.