New house was not constructed for use as primary place of residence

Tax - Goods and Services Tax - Rebates

When construction of house began in 2008, owner wife and co-owner husband were living in rental apartment in city where they both worked. House was two and one half hours drive from city. Owner claimed federal and Ontario new housing rebate in May or June 2017. Minister of National Revenue denied claim on basis that application was not submitted in timely fashion and new house was not constructed for use as owner’s primary place of residence. Owner appealed. Appeal dismissed. Municipality issued first occupancy certificate on March 14, 2014 and final occupancy permit was issued on September 25, 2017. Once owner and husband received first occupancy permit they slept inside new house whenever they were there. No restriction was seen in Ontario Building Code on structure being used by owner and husband as home after issue of first occupancy permit. List of items to be done prior to final occupancy permit were relatively modest. Prior to May 31, 2015, new house was substantially complete. Stated intention, changing addresses, location where they voted, and greater size of house compared to apartment were all indicia which favoured new house being primary place of residence. On other hand, apartment was where they lived during greater part of week and was much closer to their workplaces. Last consideration regarding time spent in each location outweighed other indicia which pointed in other direction. New house was not constructed for use as primary place of residence.

Lounsbury v. The Queen (2019), 2019 CarswellNat 2033, 2019 CarswellNat 2167, 2019 TCC 109, 2019 CCI 109, Gaston Jorré D.J. (T.C.C. [Informal Procedure]).

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