buying / selling a divided lot - GST or not?

QUESTION: i bought a .5 lot to build on . it was a 1acre lot that the owner had owned for 20 years and about 3 years ago he subdivided it in half and built on his half . his lawyer said we have to pay gst and mine said he does not think we should half  too . the lawyer are holding the money for gst in trust . how do i find out if i have to pay gst or not.


If the lot was divided into three, the two extra lots are subject to GST.

If there is only one extra lot created and the vendor has not previously subdivided a lot, yours is tax free.  However, if he started with 2 acres and subdivided off an acre 15 years ago and yours now, you 'ARE' subject to paying GST.

Reading the following technical ruling will give you something to give your lawyer and the vendor's lawyer.