We have recently seen many clients make improper “corrections” or “amendments” to previously-filed GST Returns, which ultimately causes even more problems, and leads to unrecoverable GST!
In fact, there is no legislative basis for filing a corrected or amended GST Return. We regularly see clients who chose to deal with errors by making “after-the-fact” changes to “GST collectible” or “GST credits claimed” in later periods – perhaps believing that if net tax was under-reported in January, it can be fixed by adding extra “net tax” to July!
While errors on GST Returns are a fact of life, the way that these mistakes are corrected can cause bigger problems (think: lost money)!