- BC Hydro paid $8.5 million for the option to extend an electricity purchase agreement.
- BC Hydro claimed this payment was not subject to GST/HST, arguing it was for modification or termination of the agreement.
- The Tax Court of Canada ruled the payment was for a new, separate taxable supply (the option extension), and GST/HST applied.
- The decision is under appeal to the Federal Court of Appeal.
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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