- No GST/HST was charged on tobacco products sold to status Indians due to a statutory exemption.
- The CRA argued the arrangement was a sham and that ultimate customers should be considered the recipients for GST/HST purposes.
- The Federal Court of Appeal upheld the Tax Court’s finding that status Indians, not the ultimate customers, were liable to pay for the products.
- Therefore, no GST/HST was applicable on these sales.
Source: mccarthy.ca
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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