CRA gives an expansive interpretation to the GST/HST definition of “debt security”
CRA gave the following rationale for an NSF cheque charge being for an exempt financial service:
[A] dishonoured cheque triggers a situation in which the [Organization] obtains a “right to be paid money” by the drawer of the cheque. This “right to be paid” meets the definition of “debt security” in subsection 123(1). The debt security is a “financial instrument” and the processing of a financial instrument is an exempt supply of a “financial service” … .