Issue: GST applicability on ATM transaction revenues ($8 million, 2011-2015) at River Cree Resort.
CRA Reassessment: Viewed as taxable supplies, leading to GST charges.
Tax Court Ruling: Affirmed CRA's view, prompting River Cree's appeal.
Arguments:
River Cree's Stance: Claimed operational control over ATMs or a joint venture with ATM provider Access Cash.
Challenge: Disputed Tax Court's interpretation of agreements and operational findings.
Key Legal Analysis:
ATM Operation and Control: Tax Court found Access Cash as the primary operator, with River Cree's limited involvement not constituting operational control or a joint venture.
Transaction Nature: Payments to River Cree from Access Cash, not direct from users, suggested River Cree's role in facilitating ATM placement rather than providing financial services.
Court's Decision:
The Federal Court of Appeal dismissed River Cree's appeal.
It upheld the Tax Court's findings, agreeing that River Cree did not have operational control over the ATMs and that its role was not providing financial services.
The transactions were confirmed as taxable supplies, validating the GST reassessment.
Conclusion:
The appeal was dismissed with costs to the Respondent, reinforcing the Tax Court's interpretation of River Cree's role and the taxable nature of the ATM transactions.
