The appellant (the “LP”) was a wholly-owned limited partnership of a REIT. The REIT and the LP entered into two successive written forms of agency agreements pursuant to which, in order to raise money for the LP’s real estate business, the REIT was authorized to raise money through REIT unit or debenture offerings and to incur the related costs as agent for the LP. Before finding that s. 272.1(1) did not assist the LP in claiming ITCs, Sommerfeldt J stated (at para. 203):
Subsection 272.1(1) applies in respect of things done by a person as a member of a partnership. However, in this situation, the REIT issued REIT Units and incurred related expenses, in its own right, as a trust, and not in its capacity as a member of the LP. Therefore, subsection 272.1(1) does not assist the LP.