CRA rules that a charity’s facility used to provide short-term accommodation to clients of its program was not a residential complex

A government-funded registered charity used a facility to provide a program which involved clients staying at the facility for, on average, less than 30 days. There were no lease agreements with them.

CRA ruled that the facility was not a residential complex on the basis that the accommodation provided to the clients was not of “residential units” as defined in ETA s. 123(1). Accordingly, a transfer of the facility in connection with a reorganization would be exempted under Sched. V, Part V.1, s. 1.

Neal Armstrong. Summary of 24 March 2022 GST/HST Ruling 222713 under s. 123(1) – residential unit.