Words and Phrases - "immovable"

a
87
b
44
c
77
d
51
e
38
f
31
g
18
h
14
i
74
j
2
k
2
l
32
m
56
n
25
o
38
p
80
q
3
r
76
s
90
t
46
u
16
v
9
w
23
y
2

ARQ Internal Interpretation 95-0110866

Summary Under
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Real Property - Paragraph (a)
option on real estate is intangible personal property rather than an immovable in Quebec

A registrant (the “Vendor”) grants an assignable option with a term of 20 years on vacant land held by it to another registrant (the “Purchaser”) for consideration. The ARQ stated:

Under Quebec civil law, immovables include real rights in immovables. These real rights include usufruct, use, servitude and emphyteusis, which are dismemberments of the right of ownership (Articles 904 and 907 of the Civil Code of Québec). An option to purchase (a bilateral or unilateral promise to sell) granted on an immovable does not constitute an immovable real right but rather a personal right (being a claim of a movable nature, i.e. intangible personal property).

In this situation, subsections 221(2) and 228(4) of the federal Act cannot apply because there is a taxable supply by way of sale of intangible personal property. Consequently, it is the Vendor who must collect the GST in respect of this supply pursuant to subsection 221(1) of the federal Act.

Words and Phrases
immovable