Tax Court of Canada


Taxation

GOODS AND SERVICES TAX
Proposed guarantor was not required to comply with rebate conditions

Purchaser entered into agreement of purchase and sale with builder to purchase home to be built. HZ was proposed guarantor of mortgage to finance purchase of house, and signed purchase of agreement and sale for that reason, but backed out before closing. FR became guarantor, but his replacement of HZ was not reflected in agreement of purchase and sale. Minister of National Revenue denied purchaser’s claim for new housing rebate under Excise Tax Act (Can.), on ground that purchaser and HZ did not satisfy condition of having intention that property be their primary place of residence. Purchaser appealed. Appeal allowed. HZ was not “particular individual” for purposes of s. 254(2)(a) of Act and was not required to comply with rebate conditions. HZ was only acting in capacity as agent in signing agreement of purchase and sale. Agent was not “recipient” as defined in s. 123(1) of Act. At commencement of hearing, Crown raised issue of whether purchaser intended property to be used as his primary place of residence. It was not fair for Crown to raise issue at such late stage and it was not considered.

Javaid v. R. (Apr. 17, 2015, T.C.C. [Informal Procedure], Judith M. Woods J., File No. 2014-1802(GST)I) 251 A.C.W.S. (3d) 525.

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