CIBC Asks Court for Sales Tax Exemption on Visa Fees

One of Canada’s largest banks argued before an appeal court Wednesday that services it received from Visa Canada Corp. should be exempt from sales tax.

The Canadian Imperial Bank of Commerce asked the Federal Court of Appeal to overturn a Tax Court of Canada judgment from July 2018 that found access to the Visa payment network didn’t qualify for financial service exemption from the federal Goods and Services Tax, or GST.

The appeals court Wednesday took submissions from both sides under reserve, meaning a decision will be delivered at a later date.

The tax court made several errors ...