Earlier this week, Canada’s highest Court handed down its decision in Calgary (City) v Canada 2012 SCC 20. In a unanimous judgment, the Court found that the construction of transit facilities by the City of Calgary was a single exempt supply of “public transport services” to Calgary citizens rather than two supplies, being the exempt supply of “public transport services” and a separate taxable supply of “transit facilities services” to the Province – which would have entitled the City to input tax credits for the costs of construction.
The case is interesting because it is a judgement from a Court which is the equivalent to our High Court. Also, the Court considers the following issues, which may have relevance to Australia and elsewhere:
- Determining whether there is a single supply or multiple supplies
- Whether preparatory work for a supply can be a supply in its own right
- GST implications of funding agreements and performance of statutory obligations
For my detailed analysis of the decision, click here.