Residential Complexes for Housing Employees at a Remote Work Site
Employers who are obliged to acquire, build or substantially renovate a residential complex to house employees at a remote work site can take advantage of a tax relief measure. The measure allows you to defer remittance of the GST and the QST deemed to have been collected as a result of the application of the self-supply rules.
To take advantage of the measure, you must meet the following conditions:
- You are a builder registered for the GST and the QST.
- You filed an election to defer payment of the GST and the QST.
- The residential complex will be used to house your employees, contractors and subcontractors at the work site.
- The work site is so remote that your employees cannot be expected to make their home there.
You can claim an input tax credit (ITC) or an input tax refund (ITR) respecting the tax paid on the acquisition, construction or substantial renovation of the residential complex.
This measure is effective until the residential complex is sold or leased primarily (more than 50%) to persons who are not employees, contractors or subcontractors of the employer's business. If the residential complex is sold, the builder must collect GST and QST on the selling price. If the residential complex is leased, the self-supply rules apply and the builder must remit the GST and the QST calculated on the fair market value (FMV) of the complex.