ONR Limited Partnership: What Can't An Agent Do?

Overview

The Tax Court of Canada recently held, in ONR Limited Partnership,¹that a limited partnership was entitled to input tax credits ("ITCs") for the GST/HST paid on some but not all of the supplies acquired in the name of one of its limited partners. The Court agreed that the limited partner was the agent of the limited partnership, and so the limited partnership was entitled to ITCs for supplies that related to its activities. However, the limited partner was not the agent of the limited partnership for supplies related to the limited partner's activities.

Entitlement to ITCs

A registrant is generally entitled to claim ITCs equal to the GST/HST payable on its supplies acquired for consumption, use or supply in the course of its commercial activities, provided that the relevant conditions are met. This includes supplies acquired through an agent. However, it can sometimes be difficult to determine whether supplies are acquired by an entity on its