Residential Condominium Unit

Regarding whether the conversion of a rental apartment building into condo units would be subject to GST/HST in the hands of an owner under the “self-supply” rule in ETA s. 191, CRA noted:

A "residential condominium unit" as defined in subsection 123(1) of the ETA includes a residential complex that is, or is intended to be, a bounded space in a building designated or described as a separate unit on a registered condominium or strata lot plan or description. As per the definition, only intention is required for there to be a residential condominium unit.

Partly, on this basis, CRA considered that the relevant self-supply rule was that in s. 19(1) applicable to the substantial renovation (or construction) of a residential condominium unit rather than that applicable under s. 191(3) to the substantial renovation (or construction) of a multiple unit residential complex. Thus, the issue would turn on whether there was substantial renovation of the physical space for each proposed condo unit – with CRA reiterating in this regard its longstanding position that to rise to the level of substantial renovation there would need to be a gutting (or more) of each unit at issue.