Section 191

Subsection 191(1) - Self-Supply of Single Unit Residential Complex or Residential Condominium Unit

Cases

Carvest Properties Limited v. Canada, 2022 FCA 124

The company (“Carvest”) constructed a 137-unit building in London, Ontario, for purposes of renting the units. Nonetheless, it registered each...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Fair Market Value - Land the relevant valuation unit in an apartment building for ETA s. 191(1) self-assessment purposes was each rental unit 249

See Also

Carvest Properties Limited v. The Queen, 2021 TCC 21, aff'd 2022 FCA 124

The appellant (“Carvest”), which was in the business of developing, owning and renting out apartment buildings in southern Ontario, had...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Estoppel CRA not estopped from applying a different valuation method from that used in previous audits 268
Tax Topics - General Concepts - Fair Market Value - Land rental apartment building units that were registered as condo units for municipal tax purposes were to be valued based on comparable condo sales 220

Daruwala v. The Queen, 2012 TCC 257 (Informal Procedure)

Woods J. determined that a newly-constructed home acquired by the appellants from the corporate vendor ("TRG") had already been subject to the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) 156

Administrative Policy

Excise and GST/HST News – No. 91 under "Head leases and subleases of new residential property: who must self-supply and who may be entitled to a rebate?" May 2014

If a person purchases newly constructed or substantially renovated housing for the purpose of leasing or licensing it to an individual as a place...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Builder purchase of new housing by head lessor 284

4 July 2013 Interpretation Case No. 144290

The City leases land to the Developer (with a right to sever and remove improvements on the termination of the lease), and the Developer enters...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 254.1 - Paragraph 254.1(2)(d) supply of new townhouse on ground lease 300
Tax Topics - Excise Tax Act - Section 256 - Subsection 256(2) supply of new townhouse on ground lease 84

GST/HST Memorandum 19.2.3 “Residential Real Property - Deemed Supplies” June 1998

Purpose of self-supply rules: level playing field

5. The self-supply rules.. apply only to "builders" and their purpose is to remove the potential...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 191 - Subsection 191(9) 122

Government Funding

Cases

High-Crest Enterprises Limited v. Canada, 2017 FCA 88

Owen J had found below that although government assistance for an addition to a Nova Scotia nursing home of the appellant took the form of the...

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Locations of other summaries Wordcount
Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Act - Section 14 - Subsection 14(2) CJ had no power to reassign case after trial to 2nd judge 270

Paragraph 191(1)(b)

Cases

Canada v. Polygon Southampton Development Ltd., 2003 FCA 193

The appellant (“Polygon”) developed condos on land leased from the City of Vancouver under a 99-year lease. It treated the constructed condos...

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Subsection 191(3) - Self-Supply of Multiple Unit Residential Complex

Cases

North Shore Health Region v. Canada, 2008 FCA 2

The self-supply rule did not apply to a newly-constructed nursing home when the first residents were given occupancy of their rooms given that the...

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See Also

Beaudet v. The Queen, 2014 TCC 52

The appellant ("Beaudet") was a partnership engaged in the construction of four adjoining apartment building, which it then rented out, resulting...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Fair Market Value - Land FMV of newly-constructed building equal to direct and indirect costs 174

Desjardins v. The Queen, 2010 TCC 521 (Informal Procedure)

The appellant built a 180-unit apartment building in in Sainte-Thérèse and did not report GST on the resulting self-supply when the first unit...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Fair Market Value - Land new apartment building valued at cost rathr than lower valuation based on cap rate 194

Grafton Developments Inc. v. The Queen, 2006 TCC 356

A predecessor by amalgamation of the appellant purchased a 40-year old nine-storey commercial property in Halifax on December 1, 1997 for a...

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Kimm Holdings Ltd. v. The Queen, 2006 TCC 152 (Informal Procedure)

The appellant constructed a 104-unit apartment building in Calgary. It claimed input tax credits but did not self-assess on substantial...

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Bergeron v. The Queen, docket 2002-199(GST)I (Informal Procedure)

Before confirming the application of the self-supply rule to three small apartment buildings constructed by the appellant based (in the case of...

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Le 11675 Societe en Commandite v. The Queen, docket 2000-4081(GST)G

The appellant constructed a six-storey building in Saint‑Georges, Beauce, Quebec. Its ground floor was occupied by a department store. The...

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Déziel v. The Queen, [2003] GSTC 88, 2000-4691-GST-G, varied on other grounds 2004 FCA 116

From 1993 to 1996, the appellant built 10 complexes containing 108 units in Trois-Rivières, and was assessed for failure to have self-assessed on...

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Sira Enterprises Ltd. v. The Queen, docket 98-2463-GST-G

Margeson TCJ accepted that newly-constructed apratment buildings built b the registratn should be valued on the basis of the “cost approach”...

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Timber Lodge Ltd. v. The Queen, [1994] GSTC 73 (TCC)

Both sides’ experts relied almost exclusively on the income and comparison methods in valuing newly-constructed residential apartment buildings...

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Administrative Policy

25 March 2021 CBA Commodity Taxes Roundtable, Q.2

At a prior Roundtable, CRA indicated that on receipt of a builder's objection to a reassessment under s. 191(3), where the issue is the FMV of the...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Fair Market Value - Land CRA will assign a second appraiser on an appraisal appeal, who reviews the original appraisal 102

27 February 2020 CBA Roundtable, Q.15

The definition of “fair market value” in s. 123(1) excludes those taxes that are excluded by s. 154 from the value of consideration paid for a...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Fair Market Value - Land sales of used apartment buildings used as comparables for cap rate purposes may reflect embedded GST/HST 135

27 February 2020 CBA Roundtable, Q.8

Where a person is the operator of a joint venture for the construction of a multiple-unit residential complex by virtue of having managerial or...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) a construction manager for an apartment building JV cannot be the JV operator (as no deemed commercial activity under s. 191(3) 175

May 2019 CPA Alberta CRA Roundtable, GST Session – Q.8

Where a builder was invoiced, after the time that it self-assessed for the fair market value of a newly-constructed multiple unit residential...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 133 s. 133 determines time of acquisition for ITC purposes 209
Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) ITCs can be claimed by builder after s. 191(3) self-assessment date for work done before but not after that date 326
Tax Topics - Excise Tax Act - Section 141.01 - Subsection 141.01(2) purpose of acquisition is assessed at time agreement is entered into 214

17 May 2017 Interpretation 174642

Holdco is a privately-held corporate registrant that has contracted with an arm’s length person to develop a project on its land an apartment...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) ultimate exempt use did not deny ITCs 199
Tax Topics - Excise Tax Act - Schedules - Schedule V - Part I - Section 6.11 headlease of MURC not exempt where used by lessee more than 10% in short-term rentals 124
Tax Topics - Excise Tax Act - Schedules - Schedule V - Part I - Section 5 claiming of ITC generated subsequent taxable sale 148

GST/HST Notice 224 under "Issue no. 3 – "Factors for determining whether possession is given." September 2007

If the facts of a particular case indicate that an individual is not given possession of a room or suite in the facility, then section 191 of the...

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4 April 2005 Ruling Document No. 52246

Ruling that a subsidized seniors' apartment was substantially renovated, so that s. 191(3) deemed the builder to make a taxable supply of the...

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GST/HST Policy Statement P-165R Fair Market Value for Purposes of Part IX of the Excise Tax Act (Revised) March 1998

Cost method can be used in determining FMV under self-supply

Briefly, there are three general methods or approaches to market valuation that are...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Fair Market Value - Land 69

Subsection 191(5)

Cases

Wall v. Canada, 2021 FCA 132

The taxpayer purchased three homes in Vancouver in succession between 2004 and 2009, demolished each one, constructed a new house and sold it less...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Builder - Paragraph (f) 3 successive demolish, build and sell transactions in new homes over 5 years were not excluded under (f) 258
Tax Topics - Excise Tax Act - Schedules - Schedule V - Part I - Section 3 residential use by the builder not established 267
Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate three successive sales of newly-constructed homes over a period of under 5 years were made in the course of a business or adventures 223

See Also

Swift v. The Queen, 2020 TCC 115

Over a 23-year period, an individual, who through a wholly-owned company (“TSC”) carried on a small construction business, bought and sold...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Builder - Paragraph (f) home was constructed for personal use rather than as an adventure 310
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Business “business” likely does not include an adventure 176

Coates v. The Queen, 2011 TCC 74 (Informal Procedure)

The appellant built three houses in New Brunswick, moved into them and sold them in the years 2000 to 2006, and also built the home that he...

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Administrative Policy

25 March 2021 CBA Commodity Taxes Roundtable, Q.12

An individual (A) purchased a property in trust with other individuals including her husband (B), for development as a condominium complex. On...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Residential Complex uncertainties as to whether two condos functionally used as one residence are a single residence 180

Subsection 191(9)

Administrative Policy

GST/HST Memorandum 19.2.3 “Residential Real Property - Deemed Supplies” June 1998

Time of "substantial completion"

11. Generally, substantial completion occurs before occupancy is given to the first individual. For GST/HST...

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Words and Phrases
substantial completion
Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 191 - Subsection 191(1) 211

23 February 1998 Interpretation HQR0000488

In the course of a general discussion, CRA stated:

In the case of substantially completed multiple unit residential complex, the builder is...

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