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GST — golf club memberships

My client, a golf club, was assessed over $275,000 in GST, interest and penalties for failing to collect GST on its memberships. The club's manager filed a Notice of Objection, which Revenue Canada rejected. He then appealed to the Tax Court of Canada, intending to argue the case himself (largely because he had not found anyone who seemed to understand the GST properly).

Two weeks before the scheduled trial date, the club manager contacted a lawyer who referred him to me. I sat down with him and analyzed all the facts, and concluded that most of the memberships were not taxable because they fell into a technical definition of "financial services", which were GST-exempt.

I immediately contacted the Department of Justice counsel who was to represent Revenue Canada in Court. He agreed with my analysis, and we got the case adjourned so that the calculations and paperwork could be finalized and approved. In the end, the assessment was reduced to only $35,000 - saving the golf club some $240,000.

Problem largely vanished!

(1995)