The Appellant, Bell Canada, appealed assessments under the Excise Tax Act requiring it to recapture input tax credits claimed for electricity purchases in Ontario.
The primary issue was whether the Appellant received a single supply of electricity or multiple supplies of electricity, delivery services, and regulatory services from local distributors.
The Tax Court of Canada held that the local distributors made a single supply of electricity, and the delivery and regulatory services were integral components of that overall supply.
Consequently, the Appellant was required to recapture the input tax credits attributable to the provincial portion of the HST paid on the electricity.
The appeal was dismissed with costs.
