CRA finds that a service of taking over the handling for insureds of their insurance claims was not GST/HST exempt
A company, which is not provincially licensed as an adjusting firm, for a commission took over the handling of a dispute where insured policyholders were challenging an insurance settlement offered by their insurer. CRA found that since the single supply for which the Company was paid its commission in essence was a service of negotiating and advancing the policyholder’s position to the insurer, and not a supply of “investigating and recommending the compensation in satisfaction of a claim,” it did not fall within the quoted wording of the insurance adjuster exemption in para. (j) of the ETA financial services definition. The company also did not satisfy the requirement in para. (j) that it be licensed under the laws of a province to provide its services.
Neal Armstrong. Summary of 26 January 2021 GST/HST Interpretation 197697 under ETA s. 123(1) – financial service – para. (j).