The appellant, MedSleep Inc., appealed GST/HST reassessments for 35 monthly reporting periods.
The Minister assessed MedSleep on the basis that it provided separate taxable administrative services to sleep physicians and failed to collect GST/HST.
MedSleep argued it provided a single compound exempt medical service to patients in tandem with the physicians, sharing the professional fees.
The Tax Court of Canada allowed the appeal, finding that MedSleep and the physicians jointly provided a single compound exempt supply of medical services to patients.
The Court also found that the physicians were not recipients of a taxable supply from MedSleep, meaning MedSleep had no obligation to collect GST/HST.
