OVERVIEW
In Club Intrawest v The Queen, the Tax Court of Canada considered certain intricate and novel issues. The court grappled with whether Club Intrawest made supplies, the nature of Club Intrawest's supplies, the place of these supplies, and whether a single supply could have a dual tax status. The appellant, Club Intrawest, administered a plan that allowed members to use condominium units in various vacation resorts in Canada and in the United States and Mexico.
A. FACTS
In 1993, Intrawest Resort Ownership Corporation, which we'll call the Canadian developer, incorporated Club Intrawest as a non-prot, non-stock corporation and established the Intrawest Program. It built or purchased certain Canadian vacation homes, which it sold to Club Intrawest. Similarly, Intrawest Resort Ownership U.S. (United States) Corporation and Resort Ventures L.P., which we'll call the U.S. (United States) developer, purchased or built the U.S. (United States)/Mexican vacation homes and sold them to Club Intrawest.
When the Canadian developer sold a Canadian vacation home to Club Intrawest, title to the home was transferred to a Canadian corporation to hold the property as a bare trustee (with no discretionary authority) on behalf of the benecial owner, Club Intrawest. When the U.S. (United States) developer transferred a U.S. (United States)/Mexican vacation home to Club Intrawest, the home was transferred to a U.S. (United States) corporation to hold the property as a bare trustee on behalf of the benecial owner, Club Intrawest. To pay for the purchase of the vacation homes from the Canadian and U.S. (United States) developers, Club Intrawest transferred rights to occupy the vacation homes in perpetuity (i.e., benecial ownership interests in the vacation homes). In addition, Club Intrawest retained the Canadian developer to manage and operate the vacation homes.
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First published by the Canadian Bar Association in The Commodity Tax Customs and Trade Publication (2016)
The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.
© McMillan LLP 2017