A client approached us to handle a denial of more than $1 million in input tax credit (ITC) refunds for the not-for-profit organization.
We sent a notice of objection to the Canada Revenue Agency, arguing that the disallowed ITCs involved legitimate businesses offering services to the public. The Appeals Division allowed the objection in part and reassessed the Goods and Services Tax/Harmonized Sales Tax (GST/HST) of the not-for-profit for the relevant period.
The client received an ITC refund of $1,413,445.59 and was paid to the corporation.
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