Excise Tax Act — E-15 (2)
(2) A supply of real property made by way of sale by an individual or a personal trust, other than (a) a supply of real property that is, immediately before the time ownership or possession of the property is transferred to the recipient of the supply under the agreement for the supply, capital property used primarily (i) in a business carried on by the individual or trust with a reasonable expectation of profit, or (ii) if the individual or trust is a registrant, (A) in making taxable supplies of the real property by way of lease, licence or similar arrangement, or (B) in any combination of the uses described in subparagraph (i) and clause (A); (b) a supply of real property made (i) in the course of a business of the individual or trust, or (ii) where the individual or trust has filed an election with the Minister in prescribed form and manner and containing prescribed information, in the course of an adventure or concern in the nature of trade of the individual or trust; (c) a supply of a part of a parcel of land, which parcel the individual, trust or settlor of the trust subdivided or severed into parts, except where (i) the parcel was subdivided or severed into two parts and the individual, trust or settlor did not subdivide or sever that parcel from another parcel of land, or (ii) the recipient of the supply is an individual who is related to, or is a former spouse or common-law partner of, the individual or settlor and is acquiring the part for the personal use and enjoyment of the recipient but, for the purposes of this paragraph, a part of a parcel of land that the individual, trust or settlor supplies to a person who has the right to acquire it by expropriation, and the remainder of that parcel, are deemed not to have been subdivided or severed from each other by the individual, trust or settlor, as the case may be; (d) a supply deemed under section 206 or 207 of the Act to have been made; (e) a supply of a residential complex or an interest in a residential complex; or (f) a particular supply to a recipient who is registered under Subdivision D of Division V of Part IX of the Act and who has made an election under this paragraph jointly with the individual or trust in prescribed form containing prescribed information and filed with the Minister with the recipient’s return in which the recipient is required to report the tax in respect of the supply, if (i) the recipient made a taxable supply by way of sale (in this paragraph referred to as the “prior supply”) of the real property to a person (in this paragraph referred to as the “prior recipient”) who is the individual, trust or settlor of the trust and that supply is the last supply by way of sale of the real property to the prior recipient, (ii) the particular day that is the earlier of the day on which, under the agreement for the prior supply, the prior recipient acquired ownership of the real property and the day the prior recipient acquired possession of the real property is not more than one year before the day the particular supply is made, and (iii) the particular supply is made pursuant to a right or obligation of the recipient to purchase the real property that is provided for under the agreement for the prior supply.