After having incurred substantial GST in acquiring a transit system for exempt use, the appellant commenced to lease the system to another municipal transit entity for rent of $1 per year, but with the lessee being obligated to pay municipal taxes imposed on the leased premises. Before going on to find that this lease represented a supply of the system for non-nominal consideration (so that there was a change of use under ss. 209(2) and 199(3) entitling the appellant to recover the basic tax content of this asset), C Miller J accepted that s. 141.01 required the appellant to establish that its use of the system was for the purpose of making taxable supplies for consideration, stating "if a registrant is in the unique position of only making taxable supplies without consideration, then section 141.01 should apply to deny the ITCs."
See summary under s. 141.01(1.1).