A third party (Emergis) provided automated claims processing services to the appellant (Great-West Life), which administered or insured various client drug plans, so that the prescription drug claim of an employee would be processed at the pharmacy counter upon presenting her magnetic card.
The Crown argued that the supply by Emergis was deemed to be taxable under para. (r.5) because Great-West had a right to acquire a non-exclusive licence from Emergis in the event of events such as insolvency or a winding-up of Emergis and Great-West had limited rights to use Emergis trademarks and the cards. In rejecting this submission, Owen J stated (at para. 87):
The use of the property of Emergis in this manner is not the essential character of the supply provided by Emergis to Great-West but an incidental aspect of retaining Emergis to provide the Services described in the Agreements.
See summaries under Financial Services and Financial Institutions (GST/HST) Regulations, s. 4(2) and s. 123(1) – financial service – (f.1) and (r.4).