Abedipour – Tax Court of Canada finds that a house construction not being an adventure in the nature of trade was corroborated by its custom design features

Whether the taxpayers were required to charge HST on the sale of their newly-constructed home turned, under para. (f) of the ETA “builder” definition, on whether such sale occurred “in the course of a business or an adventure or concern in the nature of trade.” In addition to accepting their explanation of changed personal circumstances for the sale, Spiro J. noted that their professed intention of holding for the long term as their home was corroborated by their idiosyncratic choices in customizing the home’s details:

… Rather than installing multiple televisions, the Appellants installed multiple fireplaces. This strongly suggests that they built the home only for themselves.

… [T]he Appellants left nothing for a potential purchaser to customize. … The fact that the Appellants finished everything to their own personal taste strongly suggests that they built the home only for themselves. The fact that it took the Appellants six months to sell the property after several price reductions supports this conclusion as do the extensive renovations performed by the buyers.

Neal Armstrong. Summary of Abedipour v. The King, 2022 TCC 155 under ETA s. 123(1) – builder – para. (f).