Digests

Customs and Excise

Excise Tax Act

Appeal from Tax Court of Canada (T.C.C.) decision (2009 TCC 292) holding that appellant builder required to collect GST on sale of houses moved from one lot to another—Under Excise Tax Act, R.S.C., 1985, c. E-15, GST payable on sale of “residential complex” by builder—“[B]uilder” defined in Act, s. 123(1) as person carrying on construction or substantial renovation of residential complex—“[R]esidential complex” defined in same subsection as part of building in which one or more residential units located, together with land immediately contiguous to building—While word “construction” not defined in Act, T.C.C. giving ordinary meaning thereto, in particular act of forming something by putting together parts—T.C.C. reasoning that since “residential complex” comprising building, land on which building standing, when appellant moving house from original lot, ceasing to be part of previous “residential complex”—By preparing foundation on new lot, installing necessary services, attaching relocated house, builder thereby constructing new “residential complex”—Term “construction” in ordinary sense may include, as T.C.C. finding, forming residential complex by putting house, land together—T.C.C. not erring in formulating applicable legal test, in applying law to facts—Appeal dismissed.

1096288 Ontario Limited v. Canada (A-260-09, 2010 FCA 332, Evans J.A., judgment dated December 6, 2010, 3 pp.)