CIBC's Operation: Provided credit/banking services under "President's Choice Financial," in partnership with Loblaw Companies Limited. Payments made to President’s Choice Bank (PC Bank), a Loblaw subsidiary.
2009 Tax Court Decision: Found no GST payable on amounts from CIBC to PC Bank for reporting periods from Dec 31, 2000, to Dec 30, 2002.
2010 Amendment: Changed the definition of 'financial service' retroactively to 1990.
Reassessments and Rebates:
2016/2017: PC Bank reassessed for failing to collect/remittance GST on CIBC payments.
CIBC applied for GST rebates for payments made from Jan 2003 to Feb 2016, which were denied.
Tax Court's Analysis (2022):
Denied CIBC's motion regarding issue estoppel and abuse of process.
Rebate judgment dismissed CIBC's rebate claims, focusing on whether the "Bundle of Rights" provided by PC Bank was a taxable supply.
Federal Court of Appeal's Decision:
Dismissed CIBC’s appeals regarding both the motion order and the rebate judgment.
Found no palpable and overriding error in the Tax Court's determination of the "Bundle of Rights" as a taxable supply.
Conclusion:
Judgment: Appeals dismissed with costs.
Implication: CIBC's claims for GST rebates denied; upheld Tax Court's interpretation of the amended definition of 'financial service'.
