16 March 2009 Interpretation Case No. 110027

A real estate nominee not only holds legal title to project real property but also, at the direction of the beneficial owners, enters into arrangements to maintain, develop, improve, manage or sell the project. CRA indicated that provided the nominee is a bare trustee, the beneficial owners rather than the nominee would be entitled to claim ITCs, including in respect of the commercial activities conducted by the nominee as their agent.

After stating that "the categorization of the Nominee as an active or bare trust is significant as it dictates who, between the Beneficial Owner and the Nominee, will be required to account for GST/HST under Part IX and thus who will be required to report tax with respect to the Projects," CRA went on to indicate that the nominee corporation in question was a bare trustee rather than the trustee of an active trust.