Supreme Court of Canada Denies Leave in Davis Dentistry
On December 21, 2023, the Supreme Court of Canada ("SCC") dismissed the Crown’s application for leave to appeal from the decision of the Federal Court of Appeal ("FCA") in His Majesty the King v. Dr. Kevin L. Davis Dentistry Professional Corporation, 2023 FCA 76.
The FCA’s decision held (consistent with the Tax Court of Canada’s decision) that dental appliances are unconditionally zero-rated for GST/HST purposes. As such, orthodontists and dentists are entitled to recover GST/HST paid on inputs attributable to the supply of appliances through the claiming of input tax credits.
On April 12, 2023, the Federal Court of Appeal had ruled in favour of Dr. Kevin Davis, upholding the Tax Court of Canada’s decision that Dr. Davis was 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.
Neil Bass and Josh Kumar of our Tax Litigation Team represented Dr. Davis in the Tax Court of Canada, the Federal Court of Appeal and, together with Steve Tenai, on the SCC Leave Application.
