La TPS/TVH S'applique Aux Paiements Effectués Par Une Banque Dans Le Cadre De Sa Participation À Un Programme De Fidélisation : La Cour D'appel Fédérale Confirme La Décision De La Cour Canadienne De L'imp't

• Published date: 17 June 2021
• Subject Matter: Finance and Banking, Tax, Financial Services, Sales Taxes: VAT, GST, Tax Authorities
• Law Firm: Stikeman Elliott LLP
• Author: Mr Jean-Guillaume Shooner

Dans une décision rendue le 20 mai 2021, la Cour d'appel fédérale (' CAF ') a confirmé la décision de la Cour canadienne de l'imp't selon laquelle les milles Aéroplan accordés à une banque canadienne (la ' banque ') dans le cadre du programme de fidélisation des milles Aéroplan (le ' programme Aéroplan ') faisaient en fait partie de la prestation unique de services de promotion et de marketing par Société en commandite Aéroplan (' Aéroplan ') à la banque et qu'ils étaient de ce fait, assujettis à la TPS/TVH.

Une traduction de ce billet sera disponible prochainement.

In a decision released on May 20, 2021, the Federal Court of Appeal ('FCA') upheld the Tax Court of Canada's decision that the supply of Aeroplan Miles to a Canadian bank (the 'Bank') pursuant to the Aeroplan Mile loyalty program ('Aeroplan Mile Program') was in fact part of a single supply of promotional and marketing services by Aeroplan Limited Partnership ('Aeroplan') to the Bank and thus subject to GST/HST.

• The Bank's main arguments on appeal were that the supply that was made by Aeroplan was the provision of Aeroplan Miles to the Bank's customers, that the Aeroplan Miles must therefore have been the predominant supply made by Aeroplan under the agreement, and that Aeroplan Miles are 'gift certificates' for the purpose of the Excise Tax Act (the 'Act').
• The FCA dismissed the Bank's appeal and found that the Tax Court judge did not err in his interpretation that the predominant supply was a single supply of promotional and marketing services. However, the FCA decided not to pronounce on whether the Aeroplan Miles are 'gift certificates' for the purpose of the Act.

Background and Judicial History

In 2003, Air Canada and the Bank entered into a credit card agreement which governed the Bank's participation in the Aeroplan Mile Program (the 'Credit Card Agreement'). The Credit Card Agreement was the basis of the supplies made by Aeroplan to the Bank and the subsequent payments made by the Bank to Aeroplan for its participation in the Aeroplan Mile Program (the 'Aeroplan Payments').

Under the Credit Card Agreement, Aeroplan essentially provided all the Bank's cardholders with membership in the Aeroplan Mile Program. It credited Aeroplan miles to those members when they made credit card purchases, whereupon it would invoice the Bank for the credited miles. Moreover, Aeroplan also undertook to provide the Bank with various referral activities or services and marketing related to the Bank's...