GST 201: CAPITAL PROPERTY
UNDERSTANDING THE FINE LINE BETWEEN CAPITAL & NON-CAPITAL PROPERTY
This is another in our GST 201 Series Reports, written to provide in-depth analysis of key topics under Canada's GST/HST regime.
In this Report, we focus on “capital property”, an overlapping concept under both the ITA and ETA that determines how special input tax credit rules apply to commercial activities.
Determining whether a property is capital is a fact-driven exercise, and even small factual differences can lead to very different results.