1351231 Ontario Inc. v. Canada (the King), 2025 FCA 53 -- summary under Residential Complex

By services, 8 March, 2025

The Appellant used a condo unit for the first nine years after purchase for long-term residential rentals and then listed it on Airbnb and rented it out for succession of short-term rentals (under 60 days and sometimes for only one night) before its sale.

Before concluding that, at the time of the sale, the condo unit was excluded from being a residential complex, so that such sale was a taxable supply for GST/HST purposes, D’Arcy J found that, at that time, the unit was similar premises to a hotel, a motel, an inn, a boarding house and a lodging house given that it along with the listed items represented “premises that are regularly supplied as accommodations to third parties on a shortterm basis for a fee” and provided furnished accommodation.

Furthermore, at the time of sale, “all or substantially all of the leases, under which the Condominium was supplied, provided, or were expected to provide, for periods of continuous possession or use of less than 60 days.”

Woods JA found no reviewable error in the above findings.

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conversion of the use of a condo from long-term rental to an Airbnb property caused its subsequent sale to be taxable
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d7 import status
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