Words and Phrases - "insurance"

a
88
b
44
c
80
d
54
e
38
f
31
g
20
h
14
i
74
j
2
k
2
l
32
m
56
n
25
o
38
p
81
q
3
r
77
s
90
t
47
u
16
v
9
w
23
y
2

Northbridge Commercial Insurance Corporation v. Canada, 2023 FCA 211

Summary Under
Tax Topics - Excise Tax Act - Schedules - Schedule VI - Part IX - Section 2 - Paragraph 2(d)
zero-rating for fleet insurance could be based on the relative expected claims experience for US accidents

The appellant (“Northbridge”) issued fleet insurance policies to trucking companies who operated their vehicles in both Canada and the U.S. The Tax Court had found that none of such supplies of insurance were zero-rated under Sched VI, Pt. IX, s. 2(d) on the basis that this provision referenced the ordinary location of the insured vehicles, and there was no evidence on that point – and accordingly confirmed the denial of Northbridge’s related input tax credit claims.

Before allowing the appeal, Webb JA stated (at paras. 34, 36 and 45):

The risk of a claim arising from an accident (or other insurable event) is linked to a geographic location. An accident (or other insurable event) occurs at a particular location. …

… Since the policies issued by Northbridge in part related to accidents (and other insurable events) that are usually situated outside Canada, the supply of a portion of the policies qualified as a zero-rated supply. …

“[R]isks” means the risk of a claim arising from an accident or other insurable event. To the extent that any insurance policy issued by Northbridge covered such risks that were ordinarily situated in the United States, the supply of such a policy would be a zero-rated supply. The risks would be ordinarily situated in the United States based on the historical data for claims arising from accidents in the United States.

Since the Tax Court had not considered the evidence relating to this point, the matter was referred back to the Tax Court for such consideration.

Words and Phrases
risks insurance
Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Ordinary Meaning “risks” interpreted from perspective of insurer 119

Watts v. The Queen, 2004 DTC 3111, 2004 TCC 535 (Informal Procedure)

Summary Under
Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(a)

Periodic disability payments received by the taxpayer under the Canada Pension Plan were not received in respect of a "disability insurance plan" and instead were taxable under s. 56(1)(a). Bowman, ACJ stated (at para. 18):

"Insurance is essentially a contractual arrangement between an insured and an insurer and involves an obligation by an insurer, upon payment of premiums, to pay an amount upon an event whose recurrence is in a certain period."

Words and Phrases
insurance