River Cree Resort – Federal Court of Appeal finds that a supply to an ATM owner was the location rather than cash loaded onto the ATM

The owner and operator of a casino resort (“River Cree”) agreed with the owner of ATMs (“Access Cash”) which, in turn, had access to the Interac payment network of a network operator, that it would make various locations on its resort available for the siting of Access’ ATMS, load those ATMs with its own cash (for the later reporting periods at issue) or with money borrowed by it from Access Cash (for the earlier periods) and provide the utilities, security, routine maintenance and customer support necessary to operate the ATMs.

Webb JA found no reversible error by the Tax Court that the predominant element in the supply by River Cree was of the exclusive right to place and operate ATMs at the Resort and to process all transactions arising therefrom, which was a taxable supply.

There was also no such error in the Tax Court’s rejection of River Cree’s contention that there was a joint venture between River Cree and Access Cash for the provision of a financial service, given that it was not evident under the terms of their agreement that they intended to associate themselves in such a joint venture.

Neal Armstrong. Summary of River Cree Resort Limited Partnership v. Canada, 2023 FCA 130 under ETA s. 123(1) – financial service – (a).