Beneficial owner of property qualified as builder to apply for and receive rebate

Tax - Goods and Services Tax - Rebates

D was sole shareholder, director and officer of U Ltd.. Minister of National Revenue denied Harmonized Sales Tax New Housing Rebate assigned to U Ltd. by first-to-occupy new home purchasers. U Ltd. appealed. Appeal allowed. Sole issue was whether U Ltd. was “builder”. Nebulous date of execution of trust agreement caused confusion, not express effective date or stated existence of triune certainties need for trust. There was prima facie evidence that U Ltd. supplied labour and materials to property within subsisting lien period and likely just before sale. Effective trust settled legal ownership upon D’s spouse and beneficial ownership on U Ltd.. It was effectively created and memorialized in writing at some point in trust declaration during period of “shared ownership” and reflected in writing prior to sale. Issue of lien rights was moot. U Ltd. was beneficial owner of property during relevant period and therefore qualified as builder under provisions of Excise Tax Act to apply for and receive properly calculated and claimed rebate.

Universo Home Construction Ltd. v. The Queen (2019), 2019 CarswellNat 1482, 2019 CarswellNat 1698, 2019 TCC 87, 2019 CCI 87, Randall S. Bocock J. (T.C.C. [Informal Procedure]).

Case Law is a weekly summary of notable civil and criminal court decisions by the Supreme Court of Canada, the Federal Court of Canada and all Ontario courts. These cases may be found online in WestlawNext Canada. To subscribe, please visit store.thomsonreuters.ca

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

List of legal organizations’ COVID-19 resources and changes

Lawyers deemed essential — but LSO urges remote work ‘wherever feasible’

LSO names recipients of 2020 awards: Mary Birdsell, Arleen Huggins, Heather Joy Ross and others…

Celebrating legal excellence – Canadian Law Awards teaser

In light of COVID-19, Ontario firms issue responses and share resources

Limitation periods suspended; law society guides on identity verification

Most Read Articles

In light of COVID-19, Ontario firms issue responses and share resources

Limitation periods suspended; law society guides on identity verification

LSO names recipients of 2020 awards: Mary Birdsell, Arleen Huggins, Heather Joy Ross and others…

Lawyers deemed essential — but LSO urges remote work ‘wherever feasible’