To tax an assignment of rights or not to tax — that is the question

By Jonathan Éthier ( November 10, 2021, 11:01 AM EST) -- In general and subject to a specific exemption, the supply of real property is subject to GST/QST. Indeed, under the Excise Tax Act, a taxable supply means a supply that is made in the course of a “commercial activity” and the legislator has specifically provided that the making of a supply (other than an exempt supply) by a person of real property constitutes a “commercial activity” (whether or not there is a reasonable expectation of profit). The prevalent GST/QST liability of a real estate sale is thus well rooted in the applicable legislation. It should be noted that the federal GST system and the Quebec QST system are generally harmonized....