See Also
FP Newspapers Inc. v. The Queen, 2013 TCC 44 (Informal Procedure)
The registrant, which was the corporate successor to an income fund, acquired, as essentially its only asset, a 49% limited partnership interest...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 141 - Subsection 141(3) | 177 | |
| Tax Topics - Excise Tax Act - Section 272.1 - Subsection 272.1(2) | s. 272.1 did not apply to limited partner | 260 |
Global Cash Access (Canada) Inc. v. The Queen, 2012 TCC 173, rev'd in part 2013 FCA 269
The appellant ("Global") enabled casino patrons to use their credit cards to receive cash advances or, more precisely, to purchase cheques from...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 138 | taxable element insufficiently minor | 262 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | 217 |
Aim Funds Management Inc. v. Aim Trimark Corporate Class Inc., [2009] O.J. No. 4798, [2009] GSTC 170, 64 DLR (4th) 261, 2009 CanLII 29491 (Ont. Sup. Ct. J.)
The Minister assessed the applicant, a mutual fund manager, on the basis that a payment to it by mutual funds of deferred sale charges received by...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Rectification & Rescission | 157 |
The Canadian Medical Protective Association v. The Queen, 2008 TCC 33, [2008] GSTC 88, aff'd supra
Before noting at para. 54, that it was conceded by the Crown that the appellant's principal activity was not the investing of funds (its principal...
General Motors of Canada Limited v. The Queen, [2008] GSTC 41, 2008 TCC 117, aff'd [2009] GSTC 64, 2009 FCA 114
The Appellant (a car manufacturer) was the administrator of various defined benefit pension plans for its employees. It directed the trustee of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Recipient | employer was contractually obligated for, and the recipient of portfolio advisory fees for employees' pension fund | 78 |
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) | recipient acquires the services | 209 |
Canada Trustco Mortgage Company v. The Queen, 2004 TCC 792
The appellant ("CTM") sold mortgage loans made by it to arm's length securitization trusts and serviced the sold mortgages including collecting...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | sale of mortgages on fully-serviced basis | 139 |
| Tax Topics - Excise Tax Act - Section 138 | sale of mortgages on fully-serviced basis with deferred purchase price labelling | 243 |
State Farm Mutual Auto Insurance Co. v. The Queen, [2003] GSTC 35
After finding that the U.S. head office of the appellant (an auto insurer) did not render or supply services to the Canadian regional office,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 138 | 84 | |
| Tax Topics - Excise Tax Act - Section 220 | charges to Canadian branch of an allocated portion of head office expenses were not for services rendered | 72 |
Ingle Manor Farms Inc. v. The Queen, docket 2001-862-GST-I (TCC) (Informal Procedure)
A fee received by the taxpayer for agreeing not to bid for the assets of an insolvent corporation did not represent consideration for a financial...
Drug Trading Company Ltd. v. The Queen, [2001] GSTC 48 (TCC) (Informal Procedure)
The registrant was a wholesaler of products to independent retail pharmacies operating under the "I.D.A." name, and also provided franchisor-like...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(2) | 210 | |
| Tax Topics - General Concepts - Agency | 168 |
Skylink Voyages Inc. v. The Queen, [1999] GSTC 119 (TCC)
The registrant served retail travel agencies by booking and purchasing airline tickets for the agencies' customers, which resulted in the receipt...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | cancellation charges were consideration for a supply | 188 |
| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(1) - Person at Risk | "slight" risk in accepting credit card slips rendered a person at risk | 336 |
| Tax Topics - General Concepts - Agency | 205 |
C.I. Mutual Funds Inc. v. Canada, [1997] GSTC 84 (TCC), aff'd [1999] GSTC 12 (FCA)
The managment fees received by mutual fund managers, which also were the trustees of the mutual fund trusts which they managed, were taxable even...
On-Guard Self-Storage Ltd. v. The Queen, [1996] GSTC 9 (TCC)
The taxpayer provided storage lockers pursuant to rental contracts that provided for a monthly rental fee with a "prompt payment discount" for...
Locator of Missing Heirs Inc. v. The Queen, [1995] GSTC 63 (TCC)
The appellant who carried on a business of finding missing heirs to property in estates of deceased persons was found not to be doing any of the...
Commissioner of Inland Revenue v. Databank Systems Ltd., [1990] BTC 5108 (PC)
The respondent provided five clearing banks with computer-related services which essentially replaced many of the clerical operations of the banks...
Customs and Excise Commissioners v. Diners Club Ltd., [1989] BTC 5084, [1989] 2 All E.R. 385 (C.A.)
The taxpayer argued that the credit card charges owing to it by cardholders arose as a result of an assignment of debts or other rights to it by...
Administrative Policy
19 November 2020 GST/HST Ruling 209409 - – Tax Status of Financial Planning Services
CRA ruled that a financial planning service was not exempt.
5 June 2012 Interpretation Case No. 127795
An independent sales organization (ISO) enters into agreements with merchants under which the merchants acquire point-of-sale terminals of a...
5 June 2012 Interpretation Case No. 81635
An "Investor" purchases point-of-sale terminals from the Supplier, who also supplies systems and services to connect the terminals , which will be...
17 May 2012 Interpretation File 97556
The Supplier, which purchases point-of-sale terminals from CanCo and sells them to merchants, also markets processing services to the merchants,...
9 January 2012 Ruling 9 January 2012 Ruling Case Number 112274
Prior to a sale of equipment by the vendor to a customer, Company A "as part of its wide range of financing services" processes the customer's...
31 October 2011 Interpretation Case No. 132880
This is the previously interpretation respecting the fee arrangement dealt with in 132880-2, two Rulings above. CRA stated:
The Dealer's Fee paid...
5 January 2012 Ruling Case No. 98811 [broker charge for securing health plan employer]
A commission charged by a broker to the administrator of a private health services plan in consideration for bringing the administrator and...
10 November 2011 Case No. 125071
Given that mortgage brokers often receive a higher rate of commission from a particular lender if they generate higher volumes of loans, many...
6 September 2011 Ruling 6 September 2011 Ruling Case No. 77006
A non-resident company (Service Provider) provides services to FinanceCo consisting of on-going processing services respecting FinanceCo's credit...
29 July 2011 Headquarters Letter 95868
A credit card loyalty program is proposed in which participating organizations (Organizations C) assist in the marketing of credit cards of a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(1) | card loyalty program credits | 116 |
29 July 2011 Headquarters Letter Case No. 82567
Pursuant to related agreements between ABC Corporation, Lenders, the Vendors or products, Dealers for the Vendors and the Customers of the...
19 July 2011 Headquarters Letter 127619
The registrant enters into marketing agreements with various merchants to promote their businesses by selling vouchers on its website on their...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 181.2 | 294 |
19 July 2011 Headquarters Letter Case No. 111922
Corporation X administers insurance policies for large health plan providers (Providers) and independent employers (Employers) including employee...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(2) | insurance policy administration | 79 |
19 July 2011 Headquarters Letter Case No. 125864
In connection with a credit card program launched by a bank, it agrees with an insurer that it will use commercially reasonable efforts to arrange...
15 June 2011 Headquarters Letter Case No. 108590
Corporation A agrees to promote a credit card to be issued by a bank by soliciting prospects to open up accounts with the bank pursuant to a...
GST/HST Notice 250, "Proposed Changes to the Definition of Financial Service", June 2010.
26 July 2007 Ruling 26 July 2007 Ruling 63048
Seller and Investor
The Seller (a registrant which is resident in Canada) sells mortgages (the "Mortgage Loans"), which have already been fully...
December 2006 GST/HST Info Sheet GI-006 "ABM Services"
Includes various examples, including:
Example 4
where an ISO (a person who markets ABM services) contracts with a merchant to be the card acceptor...
5 April 2004 Ruling Case No. 50019
The quarterly fees received in arrears (based on the market value of the investment portfolio) by an investment manager with full discretion as to...
17 December 2003 Ruling Case No. 45758
As the role of Agent B was to provide administrative services to Agent A to enable Agent A to fulfill its responsibilities for arranging for the...
17 December 2003 Ruling Case No. 40640
A corporation was characterized as providing a technology platform, which permitted the electronic collection of mortgage loan application and...
2 December 2003 Memorandum Case No. 41678
The exclusion in paragraph (q) applied to the sale of mortgages on a fully-serviced basis to a trust, based on a review of its activities set in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | 39 |
19 November 2002 Interpretation RITS 42355
An independent third party that, for a commission, engaged in the collection of overdue loans and accounts receivable due to a bank was not...
P-239 "Meaning of the Term 'Arranging For' as Provided in the Definition of 'Financial Service'" 30 January 2002. 31 March 2000 HQ Letter 25522
A commitment fee payable in connection with a merger transaction entailing share and note consideration represented consideration for a financial...
GST/HST Memorandum 17.1.1 Products and Services of Investment Dealers October 2001
Listing of Exempt Products and Services
E-1
Buying and Selling of Debt Security
Buys and sells debt securities on the secondary market as a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (b) | inactivity fee to brokerage client is exempt | 36 |
Draft Policy Statement on the Meaning of the Term 'Arranging for', 18 January 2000, No. 11595-2
"The intermediary should be fully and directly involved in the process of the provision of the financial service by the supplier and will...
21 December 1999 Headquarters Letter 8177/HQR0001783
Fees paid were characterized as being primarily consideration for marketing and promotional services notwithstanding that there were incidental...
21 December 1999 Ruling File 11595-2 No. HQR0001783/8177
A service of securing additional merchants to accept the credit card services provided by a financial institution was characterized as relating...
27 October 1999 HQ Letter HQR0001895
Where a supplier had agreed to actively solicit for and negotiate with potential buyers of the assets of a company or its shares, and a share sale...
25 August 1998 Ruling RITS HQR0001269 [trailer fees]
Trailer fees were exempt.
3 September 1997 Ruling HQR0000579
"Revenue Canada takes the position that the service of 'arranging for' the supply of a financial service ... generally refers to the activities...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Debt Security | 27 |
P-210 "Performance Bond Claims" dated 7 February 1997. P-192 "Supply of Precious Metals" P-119 "Trailer Commission Servicing Fees"
Trailer commissions paid by fund managers to investment dealers are exempt under paragraph (l) of the definition.
GST M 300-4-7 "Financial Services" GST M 700-2 "Definition of 'Financial Instrument'" B-032 "Registered Pension Plans and Registered Retirement Savings Plans"
B-033 "GST Treatment of Products and Services of a Deposit-Taking Financial Institution"
Articles
Sabrina Wong, Sania Ilahi, "Tax Implications of Asset Securitizations", 2015 CTF Annual Conference Report
Quiescence of CRA post-Canada Trustco (p. 12:21)
No significant assessments have come to light in connection with the treatment of the servicing...
Paragraph (a)
Cases
River Cree Resort Limited Partnership v. Canada, 2023 FCA 130
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...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) | for there to be a JV, there must be a mutual intention in the contract to form a JV | 153 |
Canadian Imperial Bank of Commerce v. Canada, 2021 FCA 10
CIBC issued Visa credit cards and utilized the Visa payment system, for which it paid fees to VISA. It was acknowledged that such charges...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(2) - Paragraph 4(2)(b) | VISA provided a GST/HST-exempt financial service to CIBC | 421 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (t) | VISA provided core payment processing services that CIBC could not replicate that were more than merely administrative | 284 |
See Also
Target Group Ltd v Revenue and Customs, [2023] UKSC 35
The appellant (“Target”) administered loans made by a provider of mortgages and loans (“Shawbrook”), including by operating individual...
River Cree Resort Limited Partnership v. The Queen, 2022 TCC 45
For reporting periods of the Appellant commencing after May 2014 (the “Subsequent Periods”), it was found that it had agreed with owner of...
Wiltonpark Ltd & Ors v Revenue & Customs Commissioners, [2016] EWCA Civ 1294
The self-employed lap dancers at the appellants’ clubs often would accept vouchers from customers, who had run out of cash, in exchange for...
HMRC v National Exhibition Centre Ltd., [2016] BVC 19 (ECJ (8th Chamber))
NEC sold tickets on behalf of third parties to various trade, sporting and concert events held by them at the National Exhibition Centre. Where...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | additional “booking” charges by a service provider to those paying by credit card were not consideration for a separate supply | 409 |
Paragraph (b)
Administrative Policy
GST/HST Memorandum 17.1.1 Products and Services of Investment Dealers October 2001
Item E-14 indicates that a fee charged for continuing to maintain the client account with the investment dealer firm notwithstanding that there...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service | 925 |
Paragraph (c)
See Also
ING Intermediate Holdings Ltd v HMRC, [2017] EWCA Civ 2111
Although accepting (per BLP) that a mere borrowing by a company is not a supply by it, Arden LJ confirmed the finding below that the services...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | services provided in deposit-taking business were more than peripheral so that supplies were made | 290 |
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(1) | interest paid by bank to depositors was reduced by implied fees earned as consideration going to the bank | 143 |
| Tax Topics - General Concepts - Substance | court only goes behind the contract if the contract does not reflect the true agreement | 187 |
Administrative Policy
Excise and GST/HST News - No. 108 September 2020
Forgivable loans under CECRA program
Under the CECRA program, CMHC will provide an unsecured forgivable loan to an eligible commercial property...
Paragraph (d)
Cases
Bank of Montreal v. Canada (Attorney General), 2020 FC 1014, aff'd 2021 FCA 189
Before going on to find that the Minister’s decision to reject (under s. 141.02(20)) the registrant’s request for approval of a particular...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(5) | flexibility in choice of ITC allocation method for non-FIs | 116 |
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part IX - Section 1 | interest expense of Canadian bank on foreign borrowings was a proxy for zero-rated supplies by it | 62 |
| Tax Topics - Excise Tax Act - Section 141.02 - Subsection 141.02(18) | Minister's rejection of bank's proposed methodology based on perceived distortions, was reasonable | 478 |
Administrative Policy
GST/HST Notice 325 Services Provided by Certain Insurance Intermediaries July 2023
Non-licensed insurer covers loss of new car purchasers, funded under a separate policy it has with an insurer
Example 6
- A Canadian corporation...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | 665 |
25 March 2021 CBA Commodity Taxes Roundtable, Q.4
Is the supply of “virtual payment instruments” (“VPI”), such as Bitcoin, to Canadian resident recipients an exempt supply, and does the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part IX - Section 1 - Paragraph 1(e) | supplies of crypto not zero-rated if not acquired by supplier directly from the crypto “issuer” | 138 |
3 September 2019 GST/HST Interpretation 173195 - […][Mutual Fund Units]
A group of private unit investment trusts (the Funds) are registered as an SLFI Group for GST/HST and QST purposes and having in every province,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | unit trust redemption fee would generally be exempted from GST/HST if it was payable by the redeeming unitholder to the trust rather than the fund manager | 202 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (q) | para. (q) inapplicable to any subscription or redemption fees payable by redeeming unitholders to fund manager given that they were borne by them rather than Funds | 237 |
24 January 2018 Ruling 156434
An automobile dealer (the “Dealer”) has entered into various sales contracts with customers, such as conditional sales contracts, credit...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Debt Security | conditional sales contracts and credit agreements were debt securities | 218 |
19 May 2017 Interpretation 178323
The assets of a provincial limited partnership (LP1) consisted only of an interest in a real estate development partnership (LP2). Respecting a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 240 - Subsection 240(1) | no backdating of registration of pure holding LP | 86 |
21 December 2016 Ruling 157873
An automobile dealer (the “Dealer”) enters into contracts with customers, which could be conditional sales contracts, instalment sales...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | assignment fee was part of consideration for assignment | 77 |
17 December 2015 Interpretation 153009
A corporation, which is not engaged exclusively in commercial activities, issues shares and pays dividends to its shareholders, who are both...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part IX - Section 1 | potential zero-rating re share issuances and dividends | 92 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | required shareholder communications not a supply | 177 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (f) | dividend a financial supply to recipient | 87 |
18 October 2013, TMX Notice to Participating Organizations and Members, 2013-036
During 2011, TMX submitted tax ruling requests to the Canada Revenue Agency (CRA) on behalf of all three marketplaces asking that CRA confirm that...
10 July 2008 GST/HST Interpretation 84428 - XXXXX GST/HST Visitor Rebate on Short-term Accommodation
Rulings that sales of mortgages on a fully-serviced basis were single supplies of financial services, so that the consideration received including...
8 February 2005 Interpretation Case No. 52141
Respecting the issuance of stock options to an independent contractor as additional compensation for services rendered, CRA indicated that the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) | stock options valued based on in-the-money value | 118 |
| Tax Topics - General Concepts - Fair Market Value - Options | in-the-money stock option valuation | 43 |
Paragraph (f)
See Also
Solar Power Network Inc. v. ClearFlow Energy Finance Corp., 2018 ONCA 727
A typical loan made by the lender (ClearFlow) to the borrower bore base interest rate of 12% p.a. compounded monthly, an administration fee that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) | daily discount fee had the 3 attributes of interest | 381 |
Stock ‘94 Szolgáltató Zrt. v Regional Customs and Finance Directorate-General for Southern Transdanubia of the National Tax and Customs Office, Hungary, [2016] BVC 45, C-208/15 (European Court of Justice (5th Chamber))
Stock ‘94 was a company which acted as an “integrator,” i.e., it assisted Hungarian farmers (“integrated producers”) by making a loan to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | interest on loan to fund taxable supply was part of taxable consideration | 143 |
Administrative Policy
4 November 2021 GST/HST Ruling 196473a - Supply of dental care services
ETA Sched. V, Pt. II, s. 5 exempts health care services “rendered” by a medical practitioner such as a licensed dentist to an individual. CRA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part II - Section 5 | dividends received by a dentist as the only return for his services were exempted | 152 |
27 February 2020 CBA Roundtable, Q.16
Are payments of partnership income to retired partners (i.e., a person who is no longer a partner at the payment time), including payments to...
17 September 2018 Ruling 182403
The facts are stated to be those in 15 December 2016 Interpretation 167342. A corporation is the sole holder of Class B Units of a limited...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 272.1 - Subsection 272.1(1) | partnership draws exempted under (f) of financial service | 66 |
8 March 2018 CBA Commodity Taxes Roundtable, Q.7
CRA indicated that it “is presently considering its position regarding the GST/HST treatment of Bitcoin and similar crypto-currencies.” It...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Money | CRA reviewing whether crypto-currencies are "money" | 451 |
17 December 2015 Interpretation 153009
A corporation, which is not engaged exclusively in commercial activities, issues shares and pays dividends to its shareholders, who are both...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part IX - Section 1 | potential zero-rating re share issuances and dividends | 92 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | required shareholder communications not a supply | 177 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (d) | share issuance a financial supply to shareholder | 170 |
21 January 2010 GST/HST Ruling 111598 - Whether a Financial Instrument
An entity is engaged in the purchase and sale of carbon offsets and enters into a purchase contract with Seller. Is the Offset considered a...
Paragraph (f.1)
Cases
Great-West Life Assurance Company v. Canada, 2016 FCA 316
A third party (Emergis) provided automated claims processing services to Great-West Life, which administered or insured various client drug plans,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(2) | predominant character of insurance claim processing was administrative | 250 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | characterization of single supply based on predominant elements | 203 |
See Also
Great-West Life Assurance Company v. The Queen, 2015 TCC 225
The appellant ("Great-West") provided prescription drug plans to the employees of various employers. The claims were processed by a third party...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(2) | electronic drug plan adjudication and processing was "quintessentially administrative in nature" | 279 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | services described in (r.4) did not represent the essential character of drug claim processing service | 269 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.5) | essential character of drug claim processing service was providing payment to the claimant | 186 |
| Tax Topics - General Concepts - Payment & Receipt | constructive receipt by relieving obligation to pay pharmacist | 236 |
Administrative Policy
10 January 2018 Interpretation 139614
Employers sponsor group medical and dental plans for the benefit of their employees, which qualify as a private health services plans (PHSPs), as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 175 - Subsection 175(1) | s. 175 not available to employer who through a PHSP reimburses personal health care costs of employee | 284 |
Paragraph (g)
Cases
Global Cash Access (Canada) Inc. v. Canada, 2013 FCA 269
The appellant ("Global") enabled casino patrons to use their credit cards to purchase payment instruments similar to cheques (the "cheques") from...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Consideration | "consideration" under law of contract | 123 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | three elements integrally connected | 240 |
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(1) | "consideration" under law of contract | 123 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | predominant element not described in (r.4) or (r.5) | 183 |
See Also
Vega International Car Transport and Logistic — Trading GmbH v. Dyrektor Izby Skarbowej w Warszawie, ECLI:EU:C:2019:412 (European Court of Justice, 8th Chamber)
The business of the subsidiaries of Vega International included the transport of commercial vehicles from the manufacturer to customer....
Administrative Policy
29 January 2015 Ruling 93176 [commitment fee paid to loan assignor exempt]
159222 is similar
In a Term Sheet, the lender, ACo, agrees to make a secured loan to the borrower, BCo. The Term Sheet provide for the payment by...
Paragraph (i)
See Also
Canadian Imperial Bank of Commerce v. The Queen, 2018 TCC 109, rev'd 2021 FCA 10
The CIBC issued Visa credit cards and utilized a credit card payment system operated and managed by Visa Canada. Visa Canada essentially acted as...
Administrative Policy
9 March 2023 GST/HST Ruling 244638 - Acting as an Intermediary Between a Merchant and an Acquirer under a Payment Card Network
“Acquirers,” who used funds from the customer’s credit card issuer to provide funds to pay merchants for their customers’ purchases,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | a company which negotiated agreements between credit card companies and merchants was supplying a GST/HST-exempt service | 304 |
GST/HST Info Sheet GI-200 Application of the GST/HST to Credit Card Surcharges March 2023
Description of credit card surcharge
What is a credit card surcharge
[A] credit card surcharge is a fee that …:
- it is charged to the...
Paragraph (j)
Administrative Policy
26 January 2021 GST/HST Interpretation 197697 - Application of GST/HST to services related to insurance
The Company, which is not provincially licensed as an adjusting firm, provides services to assist insured policyholders where they are disputing...
Paragraph (j.1)
Administrative Policy
20 December 2018 Ruling 189221
The Company provides the Insurer with a report indicating the replacement value of the damaged, lost or stolen property. The Company inspects...
Paragraph (l)
Cases
SLFI Group v. Canada, 2019 FCA 217
A non-resident bank ("Citibank") agreed to fund the payment of the upfront brokerage commissions that were payable on the issuance of units in the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (q) | dominant element in supply by funder of broker commissions was a financing service rather than a management service | 514 |
| Tax Topics - Excise Tax Act - Section 261 - Subsection 261(2) - Paragraph 262(2)(b) | denial includes where the CRA assessment of the tax was of another person | 428 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 8.1 | tax characterization not affected by securities law characterization | 87 |
Canada v. Costco Wholesale Canada Ltd., 2012 FCA 160
The appellant ("Costco") entered into a conventional "Merchant Agreement" with the Amex Bank of Canada ("Amex") pursuant to which it agreed to pay...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(1) | payments by credit card company to store were not merely discounts to its fees | 184 |
Canada v. Canadian Medical Protective Association, 2009 FCA 115, [2009] G.S.T.C. 65
Discretionary investment management services provided by investment managers to a not-for-profit corporation that provided professional liability...
See Also
Zomaron Inc. v. The Queen, 2020 TCC 35
CRA viewed the taxpayer (Zomaron) as essentially a marketing arm of two “Processors” (e.g., “Elavon”) that accessed the credit card issuer...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | a service of inducing merchants to use credit card processing services was an exempt financial service | 553 |
Applewood Holdings Inc. v. The Queen, 2018 TCC 231
A car dealer entered into a “Dealer Agreement” with a distributor of credit insurance products under which it was agreed that it would “up...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | promotional and administrative services of car dealer were ancillary to the customers' insurance purchases | 370 |
Canadian Imperial Bank of Commerce v. The Queen, 2018 TCC 109, rev'd 2021 FCA 10
The CIBC issued Visa credit cards and utilized a credit card payment system operated and managed by Visa Canada. Visa Canada essentially acted as...
Barr v. The Queen, 2018 TCC 86
The appellant, who was the sole shareholder of a water distribution company (“Garibaldi”) retained the services of two companies (the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | broker services in “promoting” the sale of a company to prospective purchasers would have come within (r.4) | 216 |
Mac's Convenience Stores Inc. v. The Queen, 2012 TCC 393
The registrant agreed with a bank (CIBC) that automatic banking services would be provided through ABM machines in the registrant's stores. ...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 185 - Subsection 185(1) | impulse purchases generated by ABM machine customers represented sufficient link | 154 |
Global Cash Access (Canada) Inc. v. The Queen, 2012 TCC 173, rev'd in part 2013 FCA 269
The appellant ("Global") enabled casino patrons to use their credit cards to receive cash advances or, more precisely, to purchase cheques from...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service | 377 | |
| Tax Topics - Excise Tax Act - Section 138 | taxable element insufficiently minor | 262 |
President's Choice Bank v. The Queen, 2009 TCC 170
The registrant ("PC Bank"), a subsidiary of Loblaws, had agreed with a bank (CIBC) for CIBC to provide retail banking services under Loblaws'...
Royal Bank of Canada v. The Queen, [2007] GSTC 122, 2007 TCC 281
The registrant had an arrangement with Canadian Airlines International Ltd. ("CAIL") under which the registrant's credit card customers would...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | taxable supply of frequent flyer points | 207 |
| Tax Topics - Excise Tax Act - Section 181 - Subsection 181(1) - Coupon | frequent flyer points could be coupons | 114 |
| Tax Topics - Excise Tax Act - Section 181.2 | frequent flyer points not gift certificates | 121 |
| Tax Topics - Excise Tax Act - Section 278 - Subsection 278(2) | s. 278(2) precluded direct collection on assessment of recipient until supplier released from remittance obligation under CCAA | 330 |
| Tax Topics - Excise Tax Act - Section 296 - Subsection 296(1) - Paragraph 296(1)(b) | no double taxation in s. 296(1)(b) assessment of purchaser because supplier had been released from its remittance obligation under CCAA plan | 262 |
Les Promotions D.N.D. Inc. v. The Queen, 2006 TCC 63
The appellant (“DND”), promoted credit cards for certain banks and large retailers by distributing application forms to applicants although it...
Administrative Policy
GST/HST Notice 325 Services Provided by Certain Insurance Intermediaries July 2023
Services of managing general agent ("MGA”) to insurer of marketing their policies
Example 1
- An MGA agrees with an insurer that, through its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (d) | 291 |
9 March 2023 GST/HST Ruling 244638 - Acting as an Intermediary Between a Merchant and an Acquirer under a Payment Card Network
The Company is retained by persons (each, an “Acquirer”) who supply merchants with the financial service of acting as an acquirer under one or...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (i) | "acquirer" services of credit card company were exempted | 99 |
13 January 2022 GST/HST Interpretation 187184 - Application of GST/HST to mutual fund trailing commissions in the mutual fund industry
In finding that up-front commissions together with trailing commissions (or only trailing commissions) received by a mutual fund dealer from a...
28 October 2021 GST/HST Interpretation 217144 - Trailing Commissions in the Mutual Fund Industry
Mutual fund trusts are managed by managers who are usually also their trustees. Managers remove amounts from the trusts, on a periodic basis,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (q) | para. (q) deems all services supplied by manager to MFT or MFC to be taxable | 129 |
17 August 2021 GST/HST Interpretation 207227 - Tax status of supplies made to a payment processor
The Contractor has agreed with the Company (which is a member of a payments network) to market the Company’s services to prospective merchants...
Excise and GST/HST News - No. 110, 8 December 2021
Incidental sellers of insurance
After indicating that it uses the term “incidental seller” to refer to “a person who assists the insurer in...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 211.12 - Subsection 211.12(2) | CRA will only provide transitional administrative relief where there is voluntary disclosure | 213 |
| Tax Topics - Other Legislation/Constitution - Federal - Indian Act - Section 87 | relief where there is an on-reserve purchase with a non-Indian co-owner | 180 |
15 June 2021 GST/HST Ruling 196187 - INTERPRATATION - Application of the GST/HST to supplies made by an Independent Sales Organization
Pursuant to an agreement with the acquirer (“Agreement 2”), the Taxpayer (an Independent Sales Organization (ISO)) represents the acquirer...
Excise and GST/HST News - No. 109, June 28, 2021
Zomaron was a registered independent sales organization (ISO) for the purposes of the Visa network and a member service provider (MSP) for the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 211.12 - Subsection 211.12(2) | CRA will use “discretion” in its first 12 months of administering the new e-commerce rules | 91 |
| Tax Topics - Excise Tax Act - Regulations - Public Service Body Rebate (GST/HST) Regulations - Section 3 - Subsection 3(1) - Paragraph 3(1)(a) | CEWS not included in total revenue or in government assistance | 236 |
24 January 2020 GST/HST Ruling 194625 - Services Provided to an Introducing Broker by a Carrying Broker
An Agreement between a carrying broker and the introducing broker provides that the carrying broker shall trade securities for the introducing...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(1) - Person at Risk | indemnity from introducing broker suggested that carrying broker was not a person at risk | 322 |
3 September 2019 GST/HST Interpretation 173195 - […][Mutual Fund Units]
The Master Trust Agreements between the manager of various private unit investment trusts and such Funds’ trustee stipulated that redemption...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (d) | unit trust redemption fee could be consideration for the “transfer of ownership” of units to the trust | 452 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (q) | para. (q) inapplicable to any subscription or redemption fees payable by redeeming unitholders to fund manager given that they were borne by them rather than Funds | 237 |
2 May 2019 GST/HST Ruling 150998 - Fees charged in relation to project loans
A lender retained another company in acting as its agent in doing due diligence on the borrower, with whom it had signed a credit agreement but...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | non-refundable fee paid by borrower to lender’s agent to perform due diligence and take the financing project through to closing were taxable preparatory services | 237 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.3) | predominant nature of fees paid to loan agent was for loan management | 159 |
Excise and GST/HST News - No. 102 July 2017
Predominant element of ABM supply by downstream merchant is real estate licence or other taxable supply
…Shared cash dispensing allows a person...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 229 - Subsection 229(2) | 119 | |
| Tax Topics - Excise Tax Act - Section 281.1 - Subsection 281.1(2) | 51 |
Excise and GST/HST News - No. 106 June 2019
Applewood Holdings concerned a car dealer (Applewood), who entered into a dealer agreement with “Walkaway” to sell group creditor insurance...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | car dealer's selling and processing credit insurance is exempted | 220 |
23 March 2017 CBA Commodity Taxes Roundtable, Q.12
The November issue of the Excise and GST/HST News indicated that car dealers and travel agents are not viewed as “arranging for” a financial...
16 December 2016 Interpretation 169841
The newly-incorporated Agency will enter into an agreement with a Canadian insurance company pursuant to which the Agency will perform activities...
Excise and GST/HST News, No. 100, November 2016
General taxability of franchise fee paid by mortgage broker franchisee
... When a mortgage broker provides an “arranging for” service under...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (t) | 89 |
4 February 2014 Interpretation 106288
The non-resident Service Provider agreed to provide advice and assistance in finding a purchaser for the Company's financial services operation,...
20 July 2012 Ruling 20 July 2012 Ruling Case No.137528 [taxable rebate fees from credit card issuer received by retailer]
The Company is offering a credit card program to its customers as part of its overall services and a bank issues co-branded credit cards to the...
29 June 2012 Interpretation Case No. 104941
After indicating that commissions paid by a mutual fund manager to a representative who sold mutual funds likely would qualify as being exempt as...
17 May 2012 Ruling 62492
An "Acquirer" is a connection service provider (i.e., it provides connection to the Interac network for the purpose of processing Interac direct...
4 June 2012 Interpretation Case No. 131194
The fees earned by a loan broker from car dealers
would generally be considered predominantly administration services of obtaining credit...
15 March 2012 Ruling 132880-2
Dealers, who arrange for the initial sale of shares in an Investment Fund which is managed by an Investment Manager, receive a service fee (the...
14 July 2011 Headquarters Letter Case No. 132388
A mortgage broker (acting through independent agents who are members of the Canadian Association of Accredited Mortgage Professionals, who receive...
17 May 2011 Headquarters Letter Case No. 129875
an insurer has an arrangement with a managing general agent ("MGA") to promote and effect sales of its insurance policies, and the MGA has an...
27 May 2011 Headquarters Letter Case No. 129882
A mortgage broker qualified borrowers (including assessing the impact of their credit reports), obtained commitments from mortgage lenders and...
19 May 2011 Interpretation Case No. 131970
X Co. provide lenders (through two internet portals) with an electronic loan application system for the processing and approval of credit...
GST/HST Technical Information Bulletin B-105 February 2011 "Changes to the Definition of Financial Service"
Meaning of "arranging for"
In its preliminary discussion of para. (l), CRA stated:
The term “arranging for” is generally intended to include...
Paragraph (q)
Cases
SLFI Group v. Canada, 2019 FCA 217
The appellant mutual funds (the “Funds”) gave investors subscribing for their units the “deferred sales charge,” or “DSC” option of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | dominant element in MFT commission funding arrangement was the payment, or the arranging of payment, of the funding | 187 |
| Tax Topics - Excise Tax Act - Section 261 - Subsection 261(2) - Paragraph 262(2)(b) | denial includes where the CRA assessment of the tax was of another person | 428 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 8.1 | tax characterization not affected by securities law characterization | 87 |
See Also
SLFI Group - Invesco Canada Ltd. v. The Queen, 2017 TCC 78, rev'd in part 2019 FCA 217
The appellant “Funds” were mutual funds (mostly, and treated in this summary as being entirely, mutual fund trusts) that gave investors...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 217 - Imported Taxable Supply - Paragraph (a) | non-resident vehicle provided taxable imported supply in funding MFT brokerage commissions | 281 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | dominant element of service provided by financing SPV was financing | 180 |
The Colleges of Applied Arts and Technology Pension Plan v. The Queen, 2003 GTC 899-62, 2003 TCC 618
After noting that "the measure of the 'principal activity' must be the importance of the activity to the achievement of the organization's goals...
Administrative Policy
28 October 2021 GST/HST Interpretation 217144 - Trailing Commissions in the Mutual Fund Industry
A mutual fund trust or corporation would ordinarily meet the definition of an investment plan as defined in subsection 149(5). Paragraph (q) also...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | trailer fees are exempted except in exceptional circumstances | 472 |
3 September 2019 GST/HST Interpretation 173195 - […][Mutual Fund Units]
The Master Trust Agreements between the manager of various private unit investment trusts and such Funds’ trustee stipulated that redemption...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (d) | unit trust redemption fee could be consideration for the “transfer of ownership” of units to the trust | 452 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | unit trust redemption fee would generally be exempted from GST/HST if it was payable by the redeeming unitholder to the trust rather than the fund manager | 202 |
CBAO National Commodity Tax, Customs and Trade Section – 2014 GST/HST Questions for Revenue Canada, Q. 14
Corporation A, which provides management services to a partnership whose principal business is the investing of funds, also charges the...
CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 9 ("Financial Services and Exclusion in Paragraph (q)")
Where a mutual fund salesperson provides its services to an investment plan rather than to the dealer, does para. (q) apply? CRA stated:
[U]nlike...
Paragraph (r.3)
See Also
President's Choice Bank v. The Queen, 2022 TCC 84, rev'd 2024 FCA 135
A supplier (“TSYS”), and a predecessor supplier (“FDR”) to a credit card company (“PC Bank”), that earned most of its revenues from...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 181 - Subsection 181(5) | a credit card company incurred the obligation to redeem loyalty points in the course of its exempt credit card business | 328 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (t) | automated credit and fraud monitoring services were likely excluded under para. (t) | 189 |
Canadian Imperial Bank of Commerce v. The Queen, 2018 TCC 109, rev'd 2021 FCA 10
The CIBC issued Visa credit cards and utilized a credit card payment system operated and managed by Visa Canada. Visa Canada essentially acted as...
Administrative Policy
2 May 2019 GST/HST Ruling 150998 - Fees charged in relation to project loans
Lender A appointed the Company to act as both its Loan Agent and Security Agent. In finding that two fees payable by Lender A to the Company (the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | non-refundable fee paid by borrower to lender’s agent to perform due diligence and take the financing project through to closing were taxable preparatory services | 237 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | fee paid for taking a financing from signing through to closing is taxable | 180 |
Paragraph (r.4)
Cases
Global Cash Access (Canada) Inc. v. Canada, 2013 FCA 269
Global Cash Access, which arranged for cash advances from credit card issuers to the patrons of casinos, paid a fee to the casino, which provided...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Consideration | "consideration" under law of contract | 123 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (g) | commercial efficacy of arrangement involving kiosk and support services turned on the advance of money | 428 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Supply | three elements integrally connected | 240 |
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(1) | "consideration" under law of contract | 123 |
See Also
Prospera Credit Union v. The King, 2023 TCC 65
A British Columbia credit union (“Westminster”), which provided wealth management services to its members but was not authorized to sell...
Canadian Imperial Bank of Commerce v. The Queen, 2022 TCC 83, aff'd 2023 FCA 195
A subsidiary ("PC Bank") of Loblaw ("LCL") had agreed with CIBC for CIBC to provide retail banking services under LCL's President's Choice...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.5) | the predominant element supplied by PC Bank to CIBC was a right to access Loblaw customers, engaging the (r.5) financial services exclusion | 312 |
Canadian Imperial Bank of Commerce v. The Queen, 2022 TCC 26, aff'd 2023 FCA 195
After President's Choice Bank (the “2009 Decision”) determined that services supplied by a subsidiary of Loblaw (“PC Bank”) to CIBC were...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Res Judicata | issue estoppel will rarely apply respecting transactions carried out in different taxation years | 536 |
Zomaron Inc. v. The Queen, 2020 TCC 35
The appellant (“Zomaron”) negotiated with and obtained from prospective merchants a commitment to use the card payment processing services of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | finding and signing-up merchants to use the services of a credit card payment processor was an arranging-for service | 288 |
Applewood Holdings Inc. v. The Queen, 2018 TCC 231
The appellant (Applewood), which operated a car dealership. entered into an agreement (the “Dealer Agreement”) with a distributor (Walkaway)...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | a car dealer who promoted and processed credit insurance to its customers was “arranging for” insurance | 244 |
Canadian Imperial Bank of Commerce v. The Queen, 2018 TCC 109, rev'd 2021 FCA 10
The CIBC issued Visa credit cards and utilized a credit card payment system operated and managed by Visa Canada. Visa Canada essentially acted as...
Barr v. The Queen, 2018 TCC 86
The sole individual shareholder retained two brokers for the sale of his company or its assets. Pizzitelli J first found that the commissions...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | broker fees paid to locate purchasers of a private company were HST-taxable | 430 |
Rojas v. The Queen, 2016 TCC 177 (Informal Procedure)
The appellant, who was a licensed mortgage broker, acted as an agent for a mortgage brokerage firm in obtaining mortgages for its customers, with...
Great-West Life Assurance Company v. The Queen, 2015 TCC 225
A third party (Emergis) provided automated claims processing services to the appellant (Great-West Life), which administered or insured various...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(2) | electronic drug plan adjudication and processing was "quintessentially administrative in nature" | 279 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (f.1) | essential character of drug claim processing service was providing payment to the claimant | 306 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.5) | essential character of drug claim processing service was providing payment to the claimant | 186 |
| Tax Topics - General Concepts - Payment & Receipt | constructive receipt by relieving obligation to pay pharmacist | 236 |
Administrative Policy
2 May 2019 GST/HST Ruling 150998 - Fees charged in relation to project loans
Lender A agreed to provide Loan A to Borrower A pursuant to Credit Agreement A, and appointed the Company to act as both its Loan Agent and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.3) | predominant nature of fees paid to loan agent was for loan management | 159 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | fee paid for taking a financing from signing through to closing is taxable | 180 |
6 May 2019 GST/HST Interpretation 194986 - – […][Services of a Managing General Agent]
A managing general agent (“MGA”) provides services to an insurer consisting of the recruitment, training, advising and monitoring of...
Excise and GST/HST News - No. 106 June 2019
The car dealer in Applewood entered into a “Dealer Agreement” with a distributor of credit insurance products under which it was agreed that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | CRA accepts Applewood (re para. (l) exemption for car dealers who sell, explain and process credit insurance provided to their customers) | 253 |
Paragraph (r.5)
Cases
Canadian Imperial Bank of Commerce v. Canada, 2023 FCA 195
A subsidiary ("PC Bank") of Loblaw had agreed with CIBC for CIBC to provide retail banking services under Loblaw’s President's Choice trademark....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Res Judicata | res judicata (issue estoppel) did not apply where a retroactive amendment brought to the fore in the 2nd appeal of CIBC whether it was receiving a supply of property | 426 |
| Tax Topics - Excise Tax Act - Section 309 - Subsection 309(1) | Tax Court could make a mixed finding of fact and law (as to the nature of a supply) that was on a basis different than argued by either party | 173 |
| Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) | TCC can make a finding of mixed fact and law different from that argued by either party | 47 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Property | provision of access to customers was "property" | 96 |
See Also
Canadian Imperial Bank of Commerce v. The Queen, 2022 TCC 83, aff'd 2023 FCA 195
A subsidiary ("PC Bank") of Loblaw Companies Limited (“LCL”), had agreed with a bank (CIBC) for CIBC to provide retail banking services under...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | marketing and promotional services, if regarded separately, were excluded under (r.4) | 284 |
Canadian Imperial Bank of Commerce v. The Queen, 2018 TCC 109, rev'd 2021 FCA 10
The CIBC issued Visa credit cards and utilized a credit card payment system operated and managed by Visa Canada. Before finding that the supply by...
Great-West Life Assurance Company v. The Queen, 2015 TCC 225
A third party (Emergis) provided automated claims processing services to the appellant (Great-West Life), which administered or insured various...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(2) | electronic drug plan adjudication and processing was "quintessentially administrative in nature" | 279 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (f.1) | essential character of drug claim processing service was providing payment to the claimant | 306 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.4) | services described in (r.4) did not represent the essential character of drug claim processing service | 269 |
| Tax Topics - General Concepts - Payment & Receipt | constructive receipt by relieving obligation to pay pharmacist | 236 |
Paragraph (t)
Cases
Canadian Imperial Bank of Commerce v. Canada, 2021 FCA 10
CIBC issued Visa credit cards and utilized the Visa payment system, for which it paid fees to VISA. It was acknowledged that such charges...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Regulations - Financial Services (GST/HST) Regulations - Subsection 4(2) - Paragraph 4(2)(b) | VISA provided a GST/HST-exempt financial service to CIBC | 421 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (a) | VISA supplied a payment service to CIBC | 109 |
See Also
President's Choice Bank v. The Queen, 2022 TCC 84, rev'd 2024 FCA 135
Hogan J characterized supplies made to PC Bank by a supplier and its successor as follows (at para. 145):
The main service offered by FDR/TSYS was...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 181 - Subsection 181(5) | a credit card company incurred the obligation to redeem loyalty points in the course of its exempt credit card business | 328 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (r.3) | automated credit and fraud processing services provided to credit card company were excluded under para, (r.3) | 263 |
Administrative Policy
Excise and GST/HST News, No. 100, November 2016
Claims administration for insurer
... Generally, a claims administration service provided to an insurer is a taxable supply.
For example, ......
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (l) | 575 |