The taxpayer did not report the GST that was payable under the self-assessment rule in s. 191(3) on the completion of two multiple unit residential complexes until one quarter late in the case of one building and two years late in the case of the second building. It also claimed related ITCs in the same returns.
Garon CJ dismissed the taxpayer's submission that the late-claimed ITCs should be applied to retroactively adjust the net amount of GST owing on the buildings, so as to thereby eliminate interest payable under s. 280(1). He stated (at paras. 16-17):
The juxtaposition of the mention of the particular reporting period and the preceding period in paragraph a) of Point B of [s. 225(1)] does not seem to leave any doubt that the legislative intent was to allow a taxpayer to claim input tax credit in a return subsequent to the period during which these credits could first have been claimed. ...
The above indicates that this right to input tax credit does not exist until it is claimed.