Lost Forest Park – Tax Court of Canada finds that an incorporated RV camp carried on a specified investment business

Smith J found that a corporation with one employee, that owned and ran a campground consisting of approximately 150 fully-serviced sites for use by mobile home/RV’s for about half the year (with storage available for the vehicles for the balance of the year), in the case of 90 of the sites, or for most of the year (for the balance), was carrying on a specified investment business. First, the relatively long-term character of the arrangements (e.g., typically for many months, rather than day-to-day like a hotel), and the personalization by the occupants of their sites (suggesting exclusive possession), indicated that the fees generated had the legal character of rent.

Second, he stated that:

I am not satisfied that the services provided by the Appellant, including limited event planning, garbage pick-up, office hours and “on-call” availability, changed the legal character of the income to something other than that of rental income contemplated by the definition of a SIB … .

Neal Armstrong. Summary of 1717398 Ontario Inc. (Lost Forest Park) v. The Queen, 2019 TCC 183 under s. 125(1) - specified investment business.