The appellant appealed reassessments under Part IX of the Excise Tax Act for reporting periods between December 1, 2008 and December 31, 2011.
The core issue was the proper valuation methodology to determine the fair market value of leased apartments registered as condominium units in a residential complex subject to the self-supply rules in section 191 of the Excise Tax Act.
The appellant self-assessed GST/HST based on the fair market value of the entire building using a cost plus 6% method.
The Minister reassessed the appellant based on the fair market value determined using the direct comparison method applied to the individual condominium units.
The Tax Court of Canada dismissed the appeal for the reporting periods between December 1, 2008 and June 30, 2009, finding that the direct comparison method was the most appropriate method to determine the value of the condominium units and that the Minister's appraiser selected appropriate comparables and made appropriate adjustments.
