A agreed to purchase a unit in a condo development under the “PA” from the builder (the Vendor). A then assigned his rights under the purchase agreement, including rights to a parking stall and locker, and the benefit of the deposits he had made, to B in consideration for a stipulated sum.
CRA found that the assignment of A's rights, benefits and obligations under the PA to B is a supply of an interest in a residential complex, which would qualify for exemption from GST under s. 2 of Part I of Sched. V provided A is not considered to be a “builder,” which would be the case “if A entered into the PA with the primary intention of reselling the Condominium (or an interest thereof) in the course of a business or an adventure or concern in the nature of trade.”
