CRA focuses for GST/HST real estate purposes on the beneficial owner

Where real estate is acquired by a bare trustee, the GST/HST consequences of the acquisition attach to the beneficial purchaser.

Consistently with this position, CRA has indicated that application for the new residential rental property rebate should be filed by the beneficial purchaser.  Going somewhat further afield, CRA also is continuing to maintain its position that a bare trustee is not eligible to be the operator under a joint venture even where the routine administration and cash management is done in its name - notwithstanding the widespread use of bare trustee operators.

Neal Armstrong.  Summary of 12 February 2013 Interpretation File 145624 under ETA s. 256.2(3) and  of 21 January 2013 Interpretation Case No. 146302 under ETA s. 273(1).