Royal Bank of Canada v. The Queen, [2007] GSTC 122, 2007 TCC 281 -- summary under Paragraph (l)

By services, 28 November, 2015

The registrant had an arrangement with Canadian Airlines International Ltd. ("CAIL") under which the registrant's credit card customers would receive frequent flyer points for using one of its Visa Canadian Plus credit card (the "Affinity Card"). Hershfield J. rejected the registrant's position that the payments to CAIL were payments for financial services. Hershfield J. stated (at para. 39):

To conclude, I find that CAIL's role in arranging the credit facility was incidental to its own business of selling Points. ... Selling Points was selling travel services. The Appellant purchased travel services as a reward for use of its Affinity Card which in turn increases its revenues. All else is incidental to this synergistic arrangement. It is simply not reasonable to find on the facts of this case that CAIL played any substantive role in arranging for the granting of credit by RBC.

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Tagline
taxable supply of frequent flyer points
d7 import status
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Node
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332045
Extra import data
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