Ngai – Federal Court of Appeal reverses a finding that a rebate could be claimed by an agent

The Tax Court found that an individual, who co-signed a new home purchase agreement with her nephew, did so as agent for her nephew and that she claimed the Ontario HST new housing rebate as agent and bare trustee for her nephew, so that the rebate was available. Webb JA essentially indicated that the person claiming the rebate must herself qualify for the rebate, which was not the case as the only individual to occupy the new home was an unrelated individual to the claimant.

Webb JA also implied that if the nephew had instead claimed the rebate, the rebate also would have been unavailable on the authority of Cheema (a case in which, by the way, Webb JA had dissented, but now accepts) given that a co-purchaser of the property (the aunt of the rebate claimant in this alternative scenario) did not occupy the property and was unrelated to the occupant.

Neal Armstrong. Summary of Canada v. Ngai, 2019 FCA 181 under ETA s. 254(2)(g) and Tax Court Rules, s. 6(1)(h).