Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
June 23, 1998
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for sending me a copy of a letter you received from XXXXXXXXXX, concerning the inclusion in income of Employee and Partner GST Rebates.
XXXXXXXXXX believes that Employee and Partner GST Rebates should not be included in income. The Income Tax Act permits a deduction for GST paid in respect of certain employee and partnership expenses. When GST is deducted and subsequently rebated, the Act requires that the rebate be included in computing income in the year received. Similarly, the Act requires that a taxpayer who earns income from a business to either include GST rebates in business income or to reduce business expenses.
I trust that this information will clarify the Department’s position on this matter.
Yours sincerely,
Herb Dhaliwal, P.C., M.P. Wm. P. Guglich 957-2102 981143 May 19, 1998