Update on GST Refunds

Members of the trustee community have made representation to the Canada Revenue Agency (CRA) regarding the withholding of GST refunds due to the amendments made to several acts following the 2006 budget. Legislation introduced in April 2007 prohibits debtors, who have a debt owing to the Crown or who are non-compliant in their filing requirements, from obtaining any tax refunds.

In April 2007, the CRA enhanced its systems to accommodate these legislative amendments. As a result, if an account or any related accounts are non-compliant, the system will automatically inhibit the issuance of refunds.

The CRA is aware that these system enhancements have created delays in the processing of insolvency files. This issue is being reviewed by the CRA on a priority basis. Further information will be provided as it becomes available. Refunds will continue to be held on accounts where non-compliance is identified. The CRA requests your continued patience to ensure the consistent, effective, and efficient resolution of this matter.