Hôpital Santa Cabrini – Tax Court of Canada finds that a hospital which contracted for the services of nurses employed by a personnel-services agency was not being supplied an exempt supply of nursing services

Archambault J found 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. In fact, he even found that the agreement between the hospital and each agency only gave rise to rights which were property so that the object of the agreement was property rather than services.

Neal Armstrong. Summary of Hôpital Santa Cabrini v. The Queen, 2015 CCI 264 under ETA, Sched. V, Pt II, s. 6.