A college ("Humber") was entitled to claim a rebate under s. 259(3) of 67% of most GST payable by it on its purchases. Approximately a year after it purchased three real estate properties, it realized it had failed to report those purchases. It did so in its August 2008 return, applied at that time for the 67% rebate, and remitted the net amount of GST. The Minister assessed interest on 100% of the GST from the time it was owed, without reduction for the rebate amounts. Humber appealed on the basis that the interest should be calculated on the net 33% amount so that, in effect, it should be given the 67% rebate retroactively to approximately one year before it applied for it.
In agreeing with this approach, C Miller noted (at para. 20) that if Humber had instead only reported the GST on its property purchases in its August 2008 return without claiming the rebate, then the Minister, in assessing that return, would have been obligated to apply s. 296(2.1) so as to grant the rebate on a retroactive basis - and that it was absurd to interpret the Act so as to impose a worse result because Humber made a more complete filing. He stated (at para. 22):
Clearly, subsection 296(2.1) of the Act is there to help a college that has not made the rebate claim, not to harm the college that applies for a rebate it has not yet obtained.
Accordingly, s. 280(1) was to be interpreted on the basis that "the Act intends to offset the rebate against the tax at the time the tax arises" (para. 27).