2 total
Appeal dismissed; condo pre-sales deemed supplied before GST rate reduction and subject to 6% rate.
The Appellant developed a condominium project and entered into pre-sale agreements before the GST rate was reduced from 6% to 5%.
The sales closed after the rate reduction took effect.
The Minister assessed the Appellant for unremitted GST at the 6% rate.
The Tax Court dismissed the appeal, finding that under the transitional rules and section 133 of the Excise Tax Act, the supplies were deemed made when the agreements were entered into, making them subject to the 6% rate.
Furthermore, the Appellant actually collected GST at the 6% rate and was therefore required to remit it.
Funding payments from the Federation constituted consideration for the virtual library, entitling the appellant to ITCs.
The appellant, a not-for-profit corporation operating an open-access virtual law library, appealed the Minister's denial of input tax credits (ITCs) for GST paid to third-party service providers.
The Minister argued the appellant provided an exempt supply because the public had free access to the library, meaning no consideration was received.
The appellant argued it received consideration from the Federation of Law Societies of Canada, which paid an annual levy to fund the library.
The Tax Court of Canada allowed the appeal, finding that the Federation's payments constituted consideration for the supply of the virtual library, creating a direct link between the payment and the supply.
As the supply was made for consideration in the course of a commercial activity, it was a taxable supply, entitling the appellant to claim ITCs totaling $745,690.89.
