Précis: The taxpayer was the sole shareholder of Garibaldi Springs Water Company Ltd (“Garibaldi”) and retained the services of two brokers (0922763 B.C. Ltd and P.V. Gordon Holdings Ltd) to arrange a sale of the business. He paid $281,584 in HST on the brokers’ commissions when the sale was completed (as a share sale) and in this appeal sought to recover that amount on the basis that their fees were exempt “financial services” in connection with the transfer of the shares of Garibaldi. The Crown took the position that the brokers were engaged to sell the business in general, not specifically to sell the shares. The Tax Court found that the services of the brokers were not confined to arranging for the transfer of the shares and therefore did not amount to the provision of exempt “financial services”. The appeal was dismissed with costs.
Barr v. R. – TCC: Payments to brokers to arrange for the sale of a business not exempt from GST/HST as “financial services”Plus >