The Canada Revenue Agency has revised this memorandum to reflect the change in the administrative policy relating to GST/HST wash transactions. Where a taxpayer has been assessed for an amount of tax where there is a wash transaction, the portion of the interest assessed in excess of 4% may be waived.
In addition, this change allows for additional interest relief in relation to wash transactions disclosed by GST/HST registrants through the Voluntary Disclosures Program (VDP).
These changes apply to any reporting period where net tax is due after March 31, 2007.
CRA Memorandum 16.3.1