Hôpital Santa Cabrini – Federal Court of Appeal finds that a hospital which contracted for the services of nurses employed by a personnel-services agency was not receiving an exempt supply of nursing services

Boivin JA affirmed the finding of Archambault J below that a hospital which paid outside personnel-services agencies to receive the services of salaried nurses employed by the agencies was not thereby receiving an exempt supply of nursing services under Sched. V, Pt II, s. 6 given that the nurses were providing their services under the direction and control of the hospital rather than of managers at the agencies – and, in fact, delegation by the hospital of its responsibility for patient care would have been contrary to the Quebec Occupational Health and Safety Act.

This essentially confirms the CRA policy in Excise and GST/HST News - No. 89.

Neal Armstrong. Summary of Hôpital Santa Cabrini v. The Queen, 2016 CAF 207 under ETA, Sched. V, Pt II, s. 6, ITA, s. 180(3), General Concepts - Illegality.