Précis: Université Laval is a university located in the City of Québec. It commenced plans to expand its sports facilities, Physical Education and Sports Pavilion (PEPS), to meet growing demand. As a part of that expansion it entered into two agreements with the municipality in 2010. The first agreement provided for a $10 million subsidy from the municipality. The second agreement governed usage of the PEPS facilities by municipal residents. CRA treated the $10 million subsidy as consideration for a taxable supply being made by the university to the municipality, i.e., the right to use part of its real property in the form of the PEPS facility. The university argued that the subsidy was a gift without any strings attached and therefore did not involve a taxable supply.
Univ. Laval v. R - TCC: Subsidy from city allowing residents to use sports facilities subject to GSTREAD MORE »