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ARTICLE · 20 JANUARY 2026

Top 5 Need-to-Know Canadian GST/HST Cases From 2025

McCarthy Tétrault
McCarthy Tétrault
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As the new year begins, it is an opportune time to reflect on the decisions that have shaped the GST/HST landscape. In 2025, the Federal Court of Appeal and the Tax Court of Canada...

CanadaTax
Tax Perspectives
Tax Perspectives
Al-Nawaz Nanji
Al-Nawaz Nanji
Randy Schwartz
Randy Schwartz
Simon Douville
Simon Douville
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As the new year begins, it is an opportune time to reflect on the decisions that have shaped the GST/HST landscape. In 2025, the Federal Court of Appeal and the Tax Court of Canada issued several significant rulings with implications for businesses and tax practitioners. This post highlights the top five GST/HST cases from 2025, providing key insights and considerations that may influence tax planning and compliance strategies in 2026.

1. No GST/HST Applicable on Tobacco Products Purchased by an Exempt Taxpayer for Resale

Canada v. LBL Holdings Limited, 2025 FCA 186

The taxpayer did not charge GST/HST on tobacco products sold to status Indians, who were exempt from tax pursuant to the statutory exemption from taxation for personal property of an Indian or Indian band situated on a reserve. The products were immediately resold to customers. The CRA assessed on the basis that the arrangement was a sham and that the ultimate customers were liable to pay for the

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