The appellant (Apex) was a limited partnership that developed and sold the residential condominiums in a particular Calgary condominium project, consistent with its parent’s practice of forming a separate LP for each of its condo projects. Apex hired a general contractor to construct the condo units who, in turn, engaged the trades.
In finding that Apex was required to file T5018 Summaries pursuant to Reg. 238, MacPhee J noted (at para. 18) Apex’s submission that “they are not in the business of constructing condos; they are in the business of selling condos after they are constructed,” noted (at para. 21) that in Garcia, “derived” was interpreted “to mean something akin to ‘having its source’,” and then stated (at para. 22):
[T]he source of the Appellant’s business income comes from two integral phases of their business operations; 1) the construction of condos, and 2) the sale of the condos. … To ignore the construction component of the Appellant’s business would be an incorrect interpretation of the phrase “derived primarily from”.