In order to receive approval under the Town of Banff bylaws for the development and operation of a 63-unit hotel in Banff, the respondent was required to build a 4-unit apartment building. In finding that the respondent was not entitled to input tax credit for the GST payable by it upon completion and first leasing of the apartment building Sharlow J.A. noted (at p. 32-8 to 32-9) that the definition of "commercial activity" recognized that a business may consist of a number of components each of which is integral to the business as a whole but nonetheless required "that any part of the business that consists of making exempt supplies be notionally severed", and further stated (at p. 32-9):
"It should not and does not matter whether the acquisition is motivated by the prospect of receiving rent or, as in the respondent's case, is the fulfillment of a legal obligation that must be met in order to accomplish another business objective."