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GST — rebate for ship towed out of the country

A non-resident company purchased a decommissioned Canadian ship for scrap, and paid GST on the purchase. It applied for a rebate for having taken the ship out of Canada. Unfortunately, due to delays beyond its control, it could not tow the ship out of Canadian waters until 62 days after taking delivery. The non-resident rebate under the Excise Tax Act required that the goods be taken out of Canada no later than 60 days after delivery. Revenue Canada denied the rebate, and the company appealed to the Tax Court of Canada, which dismissed the appeal.

At this point I became involved. Even though the company had already lost its appeal, I was able to get it the rebate through another route. I did this by showing that, under the GST legislation, the GST should never have been paid in the first place since the ship was purchased for export. I applied for the rebate on the company's behalf, and Revenue Canada paid it.

Rebate reappeared from nowhere!

(1995)