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GST/HST and Fee-Sharing Arrangements in Medical Clinics

Fee-sharing arrangements are common across Canadian medical clinics, diagnostic centres, and specialty practices, yet their GST/HST treatment has long been an area of uncertainty. In MedSleep Inc. v. The King (2025 TCC 70), the Tax Court of Canada addressed whether a clinic’s share of physician billings can be recharacterized as taxable administrative services, or whether such arrangements remain part of an exempt supply of medical care.

This decision provides important guidance for physicians and clinics operating under integrated care models. The Court confirmed that where clinical infrastructure, diagnostic services, and physician care are delivered together as a single continuum of patient care, fee-sharing does not automatically give rise to GST/HST exposure. For medical professionals, the case underscores the importance of properly structured agreements and clearly defined clinical roles when sharing professional revenues.

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Filming in Hollywood North

Part 1 January 9, 2025 With the US-Canada exchange rate so favorable in the last few years, it’s clear that the bustling film industry in Toronto or Vancouver, or “Hollywood

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Beat the taxman

One of my favourite Seinfeld episodes revolves around Jerry and Kramer in a heated exchange over Jerry’s broken stereo. It focuses on the fact that Kramer purposely broke the stereo

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