Zdzieblowska – Tax Court of Canada finds that CRA is required to grant an unclaimed and available new rental housing rebate when assessing to deny a new home rebate

ETA s. 296(2.1), generally requires CRA to take unclaimed rebates into account when assessing a taxpayer.

D’Arcy J dealt with a situation where a new home purchaser had claimed a new home rebate on the purchase, whereas in fact a new rental home rebate should instead have been claimed. He found that s. 296(2.1) is applicable where such an individual is assessed to deny a new home rebate. CRA in assessing must take into account any unclaimed new rental housing rebate that was available, as was the case here. However, CRA failed to do so, and the individual failed to file a notice of objection. The individual instead made a late filing for the new rental housing rebate, which was the incorrect thing to do as the two year deadline for making such a filing was inflexible (whereas there is no time limitation for requiring CRA to take that rebate into account at the time it assesses the individual to deny a new home rebate.)

Thus, the individual had no recourse for the mistake of CRA in not applying s. 296(2.1) when it assessed her.

Neal Armstrong. Summary of Zdzieblowska v. The Queen, 2019 TCC 40 under s. 296(2.1).