CRA rules that GST applied to credit application fees charged by a financing company to a vendor’s customers before it agreed to factor the related receivables
27 August 2013 - 2:24pm
CRA found that credit application fees, which a financing company charged to prospective customers of an equipment vendor before it agreed to factor (on a secured basis) the receivables of the vendor arising on the sale, were taxable. CRA’s reasoning is suspect.
Neal Armstrong. Summary of 9 January 2012 Ruling Case Number 112274 under ETA – s. 123(1) – financial service.