- The Tax Court found the land/building transfer to the shareholders was an exempt supply under ETA s. 12 (sale of farmland to related individuals), since the property was used in a farming business and then taken for personal use.
- The Minister’s GST reassessment on the transfer was therefore not upheld on that point.
- The Court refused to let the corporation use unclaimed ITCs from earlier reporting periods to reduce tax for the assessed quarter under ETA s. 296(2).
- It held that subsection 296(2) only allows ITCs that crystallized in the specific reporting period under assessment, not prior-period missed ITCs.
- The Crown conceded the appellant was entitled to current-period ITCs.
Source: norma.lexum.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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