CIBC Loses Sales Tax Case Over Grocery Store Banking Services

The Canadian Imperial Bank of Commerce has lost its appeal of a court ruling that blocked it from collecting over C$22 million($16.2 million) in sales tax rebates.

The Federal Court of Appeal dismissed CIBC’s appeal Sept. 28 of a Tax Court of Canada decision that found the transactions at the heart of a dispute with the Canada Revenue Agency were not tax-exempt.

“CIBC has failed to establish that the Tax Court Judge committed any palpable and overriding error,” Justice Wyman Webb, writing for the appeal court’s three-court panel, said in the decision.

The case centers on the ...