Federal Court of Appeal Upholds Orthodontist's Entitlement to ITCs
On April 12, 2023, the Federal Court of Appeal ruled
in favour of Dr. Kevin Davis, upholding the Tax Court’s decision that Dr.
Davis is entitled to claim input tax credits in respect of orthodontic
appliances supplied to patients. This case was an appeal brought forth by the
Crown from a decision of the Tax Court of Canada, Dr.
Kevin L. Davis Dentistry Professional Corporation v. The Queen, 2021 TCC 25.
In this appeal, the Federal Court of Appeal determined that
based on the statutory provisions of the Excise Tax Act, the supply of
an orthodontic appliance is a separate zero-rated supply from the exempt supply
of orthodontic treatment services, thus eliminating the need to perform a
common-law single vs. multiple supply analysis. As such, the Tax Court did not
err in its 2021 decision that Dr. Davis was entitled to the input tax credits
claimed.
Neil Bass and Josh Kumar, of the Aird & Berlis Tax Group,
successfully represented Dr. Davis.
