Simonetta – Tax Court of Canada finds that the need for builder-required particulars for the HST new housing rebate fell away if obtaining them was not feasible
Ms. Simonetta acquired a new Toronto home pursuant to a purchase agreement that specified that the purchase price included any applicable HST. The vendors (two individuals) claimed that the sale was exempt from HST, so that it was evident that they did not consider Ms. Simonetta to have paid them any HST on the purchase, and that they would not complete the builder-required portion (“Section D”) of the form for the new housing rebate.
Sommerfeldt J found on the evidence (even though the vendors were not parties to the case) that the vendors had never occupied the home as a residence and had sold the home as an adventure in the nature of trade – so that they were builders, and the sale was subject to HST. Accordingly, Ms. Simonetta had established one of the mooted requirements for claiming the rebate, namely that she had paid HST on her purchase.
Regarding Section D, Sommerfeldt J found:
[I]t was not possible for Ms. Simonetta to obtain the business number (if any), address, telephone number and signatures of the Vendors [as required by Section D]. Therefore, Ms. Simonetta’s inability to obtain that information and those signatures does not vitiate her Application for the Rebate.
Neal Armstrong. Summaries of Simonetta v. The King, 2023 TCC 54 under ETA s. 254(2)(d) and s. 262(1).