CRA rules that a medical clinic receiving a share of the clinic doctors’ billings to the provincial health care plan was supplying GST/HST taxable administrative services to them

CRA ruled that a medical clinic providing its facilities to doctors in exchange for a percentage of their provincial health-care plan billings was making a single taxable supply of administrative services to them. CRA has pronounced that fee-sharing arrangements can be structured so as to minimize the GST/HST drag relating to the use of the shared health-care facilities (see P-238), but the above arrangement did not so qualify.

Neal Armstrong. Summary of 10 January 2017 Ruling 165757 under Sched. V, Pt. II, s. 9.