LETTERS TO THE EDITOR — Input tax credits

I am the accountant for a group of mining exploration companies and I’d like to point out a decision recently reached by a Revenue Canada auditor after a desk audit of our claim for input tax credits.

We do not have any revenue from operations. Our cash was invested in securities and we sold them recently. Revenue Canada has, therefore, rejected our claim for input tax credits because it considers us “an unlisted financial institution” as more than 10% of our revenue this year comes from the sale of securities (all of it does).

Have other exploration companies run into this problem?

M. Williamson

Toronto