Canadian Supreme Court hands down GST decision on single/multiple supplies

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.

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