# TIM-02 — Deposits (s.168(9)) — ⚠ source does not support this half

**Flag: Unconfirmed** — Believed right, never verified against a source. Do not publish from this alone.

Current (prepayments, s.133) · **Unconfirmed (deposits, s.168(9))**

**Deposits** (s.168(9)) — ⚠ **source does not support this half.** The mirror of Memorandum 3-1 (`Sources/GST-HST Memorandum 3-1 — Liability for Tax.md`) contains no reference to s.168(9) and does not use the word "deposit" anywhere; the only 168-series provision it cites is s.168(8), an unrelated combined-supply rule. Find a source that actually states the deposit rule before publishing on it. The rule as understood: a deposit is security for a future obligation and is not consideration until the supplier applies it against the price or the customer forfeits it — refundable or not. **Prepayments are a different rule:** s.133 deems the agreement itself to be the supply, so tax applies to a prepayment even though nothing has been delivered. CRA does not use the word "retainer" — describe the mechanism, not the label

## Sources

- Memorandum 3-1 (primary): https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/3-1/liability-tax.html

Jurisdiction: FED · Verified 2026-08-27 · Review: legislative