Condominium Plan No. 9422336 v. Canada [Tax Court of Canada]

This commercial condominium appealed an assessment of GST arrears claimed by the Minister of National Revenue under the Excise Tax Act.

Residential condominiums are specifically exempt from GST under the Excise Tax Act, but commercial condominiums are not.  Nevertheless the Court found that commercial condominiums are also exempt for the following reasons:

• The condominium corporation exists solely for the purpose of acting as the agent of the unit owners;
• The condominium corporation does not conduct “commercial activity”, as defined in the Excise Tax Act, because corporation’s activities are carried on without any expectation of profit.

 Condominium Plan No. 9422336 v. Canada [Tax Court of Canada]