Tax Court of Canada


Goods and Services Tax


Term “particular individual” refers to all purchasers as group

Homebuyer and spouse sought to purchase property but were unable to obtain mortgage financing and sought assistance of third party. Third party agreed to be co-mortgagor on loan and to be registered owner on title for homebuyer and spouse to receive financing approval. Homebuyer, spouse and third party signed Acknowledgement of Trust under which third party held title in trust for homebuyer and spouse. Homebuyer, spouse and third party took possession of property and took legal title to property as joint tenants. Homebuyer claimed rebate in amount of $25,015.70 for which he had been credited by builder and rebate application was denied by Minister. Notices of objection, confirmation and appeal were issued. Homebuyer appealed. Appeal dismissed. Section 254(2)(b) of Excise Tax Act requires that, at time particular individual becomes liable or assumes liability under agreement of purchase and sale for property, he or she must be acquiring property for use as primary place of residence for him or her personally or for relative. Where there was more than one purchaser, s. 262(3) of Act makes it clear that term “particular individual” in s. 254 refers to all purchasers as group. As was case with co-signer of 2016 decision, third party declared that she neither lived nor intended to live in property. Requirement for obtaining new house rebate, that particular individual must intend to occupy property, was not met.

Omapas Duyo v. The Queen (2018), 2018 CarswellNat 1902, 2018 TCC 79, Robert J. Hogan J. (T.C.C. [Informal Procedure]).

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