T-0.1 - Act respecting the Québec sales tax

Section 222.1 Disposition versions

1994-06-17

222.1. Where a person who has an interest in land makes a supply of the land by way of lease, licence or similar arrangement and at any time gives possession of the land as set out in subparagraph 2 of the second paragraph, the person is deemed

(1)  to have made, immediately before that time, a taxable supply by way of sale of the land and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the land at that time; and

(2)  to have received, at that time, a taxable supply by way of sale of the land and to have paid, at that time, tax in respect of that supply calculated on the fair market value of the land at that time.

However, the first paragraph applies only where

(1)  the supply is an exempt supply referred to in section 99 or paragraph 1 of section 100;

(2)  the person at any time gives possession of the land to the recipient of the supply under the arrangement;

(3)  the last use of the land by the person before that time was not under an arrangement for a supply referred to in subparagraph 1 of this paragraph;

(4)  the person was not deemed under section 243, 258 or 261 to have made a supply of the land at or immediately before that time; and

(5)  the recipient of the supply is not acquiring possession of the land for the purpose of

(a)  constructing a residential complex thereon in the course of a commercial activity, or

(b)  making an exempt supply of the land referred to in section 99.

1994, c. 22, s. 478.