Non-refunded GST

more water cooler talk? I have a situation where the Prov government is refunding a client for legal bills.
The Prov gov’t does not pay GST.
The owner paid over $100k of legal bills (plus GST)
I believe this would be like GST charged at the border - claim of GST with no related expense
This is over $5000 of ITC’s
Any issues that you see?

I would think this work the same as having work done that an insurance company.

If a company vehicle has been in an accident and an insurance claim is made. The insurance company will pay everything but the HST and the company pays the HST and in turn, claims an ITC for the HST paid, yet there is no expense associated (maybe a deductible, if applicable).

If the $5,000 triggers a refund of $1,000 or more, you might get a CRA call BEFORE you see the money.

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