Adam Pasichnyk

The appellant employer sought to claim input tax credits (ITCs) for GST/HST paid on paramedical services (acupuncture, massage therapy, naturopathy, and homeopathy) provided to its employees and their families under a self-funded health benefits plan.

The Minister disallowed the ITCs.

The Tax Court of Canada dismissed the appeal, finding that the employer did not acquire the services itself.

Furthermore, the deeming provisions under section 175(1) of the Excise Tax Act did not apply because the health care services were intended for the exclusive personal use of the employees and their families, and were not consumed or used in relation to the employer's commercial activities.

The appellant appealed reassessments disallowing interest expense deductions for the 2013, 2014, 2015, and 2016 taxation years.

The appellant had borrowed money from family and friends to finance unexpected renovations on a commercial property, and later used personal lines of credit to repay those loans and fund ongoing construction.

The Tax Court of Canada allowed the appeal for 2013, 2014, and 2015, finding that the borrowed money from three lines of credit was used for the purpose of earning income from a business or property, and the commingling of funds did not preclude the deduction.

The appeal for 2016 was quashed as no notice of objection had been filed.