Exempt Service for GST

Case Citation
Keeler v. The Queen (2013 TCC 28) [TCC] [CanLII]
A taxpayer’s services did not meet the requirements of being an exempt service under Part II of Schedule V of the Excise Tax Act. The act sets out specifics requirements and the the trauma therapy service simply didn’t met them.
[1] This appeal concerns whether trauma therapy services provided by the appellant, Lyn Williams‑Keeler, are exempt from goods and services tax (GST). Ms. Williams-Keeler has been assessed under the Excise Tax Act on the basis that the services are taxable except to the extent that they are covered by provincial health insurance.
Part II of Schedule V
Cases Cited
[13] The Excise Tax Act provides exempt status to a great many health care services listed in Part II of Schedule V. Services by trauma therapists are not listed specifically, but Ms. Williams‑Keeler submits that her services are encompassed by the following exemptions:
(a) a supply by a medical practitioner (section 5);
(b) a supply by a practitioner of a psychological service (section 7(j)); and
(c) a supply of a health care service made on the order of a medical practitioner or practitioner (section 10).
[14] Despite the sympathetic circumstances of this appeal, I have concluded that the services provided by Ms. Williams‑Keeler are not encompassed by any of the above exemptions. My reasons follow.
[33] I would conclude that the exemptions relied on by Ms. Williams‑Keeler do not include the trauma therapy services that she provides. Although there may be good policy arguments in favour of exempting these services, this is a matter for Parliament and not the courts. The appeal will be dismissed.
A paragraph beginning with a number in square brackets is a direct quote from the case.

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