GST/HST Bad Debt Deductions Denied for Strict Non-Compliance

• The Tax Court denied Heydary Green Professional Corporation’s GST/HST bad debt deduction because strict statutory requirements were not fully met.
• CRA refused the deduction on three grounds: inadequate collection efforts, failure to write off the debts in the books, and failure to remit all required HST before claiming it.
• The firm argued its circumstances were exceptional and made compliance difficult, but the Court applied the law strictly and rejected those arguments.
• The case reinforces that all statutory conditions for GST/HST bad debt relief must be independently satisfied; partial compliance or fairness considerations do not excuse non-compliance.

Source: goodservicetax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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