- For GST/HST purposes, whether a taxpayer is a “builder” under the Excise Tax Act can determine tax on sale or deemed supply of residential property, availability of input tax credits, and GST/HST consequences when a property is retained as a rental or changes use.
- The CRA may treat real estate investors, developers, or property owners as builders even if they describe the project as an investment, rental business, or personal venture.
- “Builder” is a statutory term, not an ordinary one; it is not limited to traditional construction companies or those physically doing the work.
- A taxpayer can still be a builder even when construction or substantial renovation is carried out by third-party contractors.
- In GST/HST audits and tax litigation, the builder characterization can be central and sometimes decisive.
Source: sdtaxlaw.ca
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.
