What is the difference between a GST/HST rulings and interpretations?
Allan Madan, CA
An interpretation is an anonymous rulings request to the GST/HST rulings department. You will supply the case facts to the CRA who will then provide a ruling of whether you have GST/HST responsibilities based on these facts. If it is determined that you have HST responsibilities, you have the choice to ignore the interpretation as this is an anonymous interpretation based on generic facts. Please note that an interpretation (regardless of the outcome) is not binding and cannot be used as a valid defense in the event of an audit.
On the other hand, a ruling is an official verdict on your GST/HST responsibility. You will submit all the facts to the CRA including your account details (business number or social insurance number). The ruling provided by the CRA will be final and binding. If the CRA determines that you have a GST/HST responsibility, you will be forced to collect and remit GST/HST as required (no choice in the matter).
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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