The appellant trucking company appealed a GST/HST assessment regarding its claim for HST monthly reporting periods.
The Minister assessed HST on chargebacks the appellant collected from its independent contractor drivers for diesel fuel and vehicular maintenance.
The Tax Court found that while the appellant did receive and resupply the diesel and maintenance services to the drivers, a significant portion of these supplies (69% for fuel and 95% for maintenance) were made in the United States, not in Canada.
Therefore, the appeal was allowed and the assessment was referred back to the Minister to reduce the assessed HST accordingly.
