The registrants had unclaimed input tax credits (well in excess of their taxable supplies) for 2003 and 2004, for which they did not file GST returns until September 2009 (i.e., beyond the limitation period in s. 225(4) for ITC claims). The Minister denied all of the ITCs claimed in excess of the GST collectible on the taxable supplies made by them, relying on such limitation period.
Webb J., after finding that the registrants' claim for ITCs should be allowed pursuant to s. 296(2) so as to result in negative net tax for the 2003 and 2004 reporting periods, indicated that the Tax Court had no jurisdiction to determine whether the net refund position for those reporting periods was payable to the registrants pursuant to s. 296(4).