Tax Court of Canada Confirms GST/HST is Payable on Purchase of Vacant Commercial Space Despite Purchaser’s Intention to Convert it to Residential Use

In an informal procedure decision rendered on March 24, 2026, Justice Rabinovitch of the Tax Court of Canada (“Tax Court”) dismissed in part the appeal in Moseley v. The King, 2026 TCC 59, ruling that the appellant taxpayer (“Appellant”) was liable for GST/HST on the portion of the purchase price of a commercial building attributable to a former restaurant space that the purchaser proceeded to convert into a residential unit.... By: Stikeman Elliott LLP