Cinnamon City Bakery Cafe Inc. v. The Queen, docket 2001-405-GST-I (TCC) (Informal Procedure) -- summary under Subsection 167(1)

The appellant had established and operated cafés in major shopping malls and subsequently sold the cafés as franchises. Such sales to various franchisees qualified as the supply of a business for purposes of s. 167(1). However, no elections were filed on a timely basis and franchise fees received for the provision of initial training and procedure manuals to the franchisees and for the licencing of trademarks would have been excepted from the operation of s. 167(1) by virtue of s. 167(1.1). Although s. 167.1 would have allowed goodwill to be transferred free of GST, the appellant had been unable to specify in any way the value of the goodwill.