Webb J found that the obligation of the Minister to take unclaimed input tax credits into account in an HST audit under s. 296(2) of the Excise Tax Act extends to unclaimed ITCs that arose before the normal limitations period for claiming ITCs (see summary under s. 296(2)).
In the course of his reasons, Webb J noted that the Minister was not entitled to rely on gaps in the appellant's documentation, because the Minister had not made any assumptions regarding documentation, and the only evidence on that point indicated that there was documentation.