A college ("Humber") was entitled to a 67% GST rebate on the purchase of certain properties. Due to late filing, there was a delay between the times the GST was due and when the rebate was claimed. C Miller J found that the interest Humber owed under s. 280(1) should be calculated on 33% of the gross GST owing (i.e. that the 67% rebate should be effective from the date Humber was entitled to it rather than one year later when it applied for it).
After so finding, he went on to find that the rebate amounts could not (in the alternative) been retroactively applied to reduce the amount of GST owing ab initio to 33% on the authority of s. 296(2.1), given the clear wording of s. 296(2.1)(b) prohibiting such a reduction under s. 296(2.1) where the taxpayer had applied for the rebate before the time of assessment.