Becker – Tax Court of Canada finds that the Minister could switch from the HST self-supply rule to the general sales rule to support a new home assessment

The appellant was assessed HST on the basis of having made a self-supply of a new home in in May 2013 (i.e., he had occupied it after its construction otherwise than as his primary residence) – but then in April 2025, Cook J granted the request of the Minister to amend the Reply so that the general supply rule was the primary argument in support of the assessment. Cook J. now found that the self-supply rule did not apply, as the appellant had never occupied the new home, and that the sale of the new home in May 2013 was taxable under the general supply rule.

The appellant argued that, as the assessment was made under the self-supply rule rather than the general supply rule, the appeal should be allowed because the Minister had not assessed the correct transaction.

Cook J indicated that the amount of the assessment was supported by the general supply rule, so that the amended version of s. 298(6.1), by its terms, permitted that alternative basis to be advanced "in support of all or any portion of the total amount determined on assessment to be payable."

Furthermore, regarding the finding in Liu - that the amended version of ITA s. 152(9) (similar to s. 298(6.1)) “does not enable the Minister to raise new arguments and basis arising from an entirely new set of transactions” - was distinguished on the ground that, in this case, there was only “one series of events giving rise to the two potential tax outcomes”.

Neal Armstrong. Summaries of Becker v. The King, 2026 TCC 158 under ETA s. 123(1) – builder – (f), s. 298(6.1) and s. 280.1.