Subsection 254(1)
Single Unit Residential Complex
Administrative Policy
GST/HST Notice 323, Proposed GST/HST Treatment of Assignment Sales, May 2022
Examples of extended definition (p. 3)
For the purposes of [s. 192.1] a single unit residential complex also includes:
- a multiple unit...
Subsection 254(2) - New Housing Rebate
See Also
Al-Hossain v. The Queen, 2014 TCC 379
After signing an agreement to purchase a new home, the appellant was advised that to secure mortgage financing, he would need to obtain a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Effective Date | bare trust declaration was too late | 138 |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) | bare trust declaration was too late | 138 |
Goyer v. The Queen, [2010] GSTC 163, 2010 TCC 511 (Informal Procedure)
Angers J. denied the rebate to the appellant who, along with two other individuals, purchased vacant land in Quebec and signed an agreement for...
Davidson v The Queen, [2002] GSTC 25 (TCC)
The appellant purchased a new duplex. Title was taken in his name and of another ("Waterhouse"), who was not a beneficial owner and was joined as...
Administrative Policy
RC4028 GST/HST New Housing Rebate
Paragraph 254(2)(a)
See Also
Libfeld v. The Queen, 2022 TCC 91 (Informal Procedure), aff'd 2023 FCA 235
The taxpayer (“Libfeld”) claimed the $24,000 Ontario new housing rebate on his purchase in 2018 of an unoccupied and sparsely-furnished home....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Builder - Paragraph (f) | no direct evidence that vendor was not selling as capital property | 206 |
| Tax Topics - Excise Tax Act - Section 223 - Subsection 223(1) | statement that purchase price included HST “if” subject to HST was not an HST-inclusive clause | 48 |
Chen v. The Queen, 2020 TCC 112 (Informal Procedure)
An individual (the “Assignor”) who was the employer of the appellant and a personal friend of the appellant’s uncle agreed in 2011 to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(2) - Paragraph 254(2)(d) | “payable” requirement satisfied where netting with new home rebate assignment | 89 |
Crooks v. The Queen, 2016 TCC 52 (Informal Procedure)
The appellant agreed in 2010 to purchase an (as yet, unconstructed) condo unit and in 2012, one month before closing and as a result of a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Recipient | “ultimate liability” doctrine indicated an accommodation-party co-purchaser of condo was not a recipient | 301 |
| Tax Topics - Excise Tax Act - Section 262 - Subsection 262(3) | accommodation co-purchaser (for financing purposes) of condo was not a recipient of supply by builder | 231 |
| Tax Topics - General Concepts - Substance | the addition of an accommodation co-purchaser (for financing purposes) of condo did not reflect the parties' true intentions | 173 |
| Tax Topics - General Concepts - Sham | the addition of an accommodation co-purchaser (for financing purposes) of condo might have been a sham if done for tax purposes | 131 |
| Tax Topics - Statutory Interpretation - Benefits-Conferring Legislation | interpretation to favour conferral of intended benefits | 207 |
Administrative Policy
June 27, 2000 Interpretation 25236
A agreed to purchase a unit in a condo development under the “PA” from the builder (the Vendor). A then assigned his rights under the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part I - Section 2 | assignment of interest in condo before completion was exempt if assignor not a builder | 141 |
Paragraph 254(2)(b)
Cases
Chen v. Canada, 2023 FCA 146
In order to satisfy the requirements of the lender, the agreement for the purchase by the appellant (Ms. Chen), who was a university student, of a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Recipient | purchasers included two individuals who had no entitlement to acquire beneficial ownership | 170 |
| Tax Topics - General Concepts - Stare Decisis | stare decisis applies horizontally | 111 |
Canada v. Cheema, 2018 FCA 45
Because of lender requirements respecting the taxpayer’s purchase of a new home, the purchase agreement was signed by the friend of the taxpayer...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 133 | s. 133 deemed an acquisition of future home on co-purchaser's signing purchase agreement, notwithstanding that no beneficial interest received on closing | 268 |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | Court should not depart from usual interpretation principles in seeking a sensible result | 128 |
| Tax Topics - Statutory Interpretation - Ease of Administration | interpretation that favours administrative efficiency is to be favoured | 206 |
| Tax Topics - Excise Tax Act - Regulations - New Harmonized Value-Added Tax System Regulations, No. 2 - Section 40 | co-purchaser with no intended beneficial interest was required to satisfy ETA s. 254(2) rules | 171 |
| Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) | "legal acquirer" rather than intended beneficial owner was the purchaser | 219 |
See Also
Poirier v. The Queen, 2019 TCC 8
Smith J found that the appellant was not entitled to the New Housing Rebate for a new condo unit purchased by him given that after agreeing to the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 297 - Subsection 297(1) | 12 months to bounce a rebate application was “with all due dispatch” | 314 |
| Tax Topics - Excise Tax Act - Section 256.2 - Subsection 256.2(7) - Paragraph 256.2(7)(a) | no power to extend 2-year deadline even where new housing rebate mistakenly applied for within 2 years | 126 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 32 | failure to state material particulars not cured by s. 32 | 151 |
| Tax Topics - Excise Tax Act - Section 262 - Subsection 262(1) | failure to include prescribed information vitiated purported new rental housing rebate application | 270 |
| Tax Topics - Excise Tax Act - Section 296 - Subsection 296(2.1) | s. 296(2.1)(b) precluded using s. 296(2.1) to overcome the 2-year deadline for claiming the NRRP rebate | 302 |
Zheng v. The Queen, 2017 TCC 132 (Informal Procedure)
The appellant (“Qun”), of Richmond Hill, Ontario was asked by her older sister (“Yu-Lian”) and Yu-Lian’s ex-husband (“Kwong”), both...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Agency | rebate application was made and signed as agent | 195 |
| Tax Topics - Excise Tax Act - Section 279 | rebate application made and signed as agent | 78 |
Parthiban v. The Queen, 2017 TCC 30 (Informal Procedure)
The Appellant and his wife were U.K. citizens and passport holders who sold their U.K. home, moved to Canada in 2011 with the status of visitors,...
Cheema v. The Queen, 2016 TCC 251 (Informal Procedure), rev'd 2018 FCA 45
Because of lender requirements respecting the taxpayer’s purchase of a new home, on the closing of the purchase, a friend of the taxpayer (Dr....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Agency | bare trustee is transparent for tax purposes | 155 |
Gill v. The Queen, 2016 TCC 13 (Informal Procedure)
The appellant signed a conditional pre-habitation [“préoccupation”] agreement with a home builder on September 1, 2011, and subsequently...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(2) - Paragraph 254(2)(g) | post-acquisition occupation was "temporary and sporadic" | 67 |
| Tax Topics - Statutory Interpretation - French and English Version | interpretation of French version confromed to prior interpretation of more ambiguous English version | 190 |
Administrative Policy
GST/HST Policy Statement P-228 Primary Place of Residence 30 March 1999
Summary of listed factual indicia
- Address listed for mailing, tax return, voting, school tax and telephone purposes.
- Location of personal...
Paragraph 254(2)(d)
See Also
Simonetta v. The King, 2023 TCC 54 (Informal Procedure)
The appellant acquired a new home in Toronto pursuant to an agreement of purchase and sale which provided that if the sale was subject to HST,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 262 - Subsection 262(1) | need for builder-required particulars for the HST new housing rebate fell away if obtaining them was not feasible | 215 |
| Tax Topics - Excise Tax Act - Section 223 - Subsection 223(1) | price stated to include any HST included HST since the sale was taxable | 44 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Builder - Paragraph (f) | purchaser established that the vendor was a builder | 155 |
Chen v. The Queen, 2020 TCC 112 (Informal Procedure)
In finding that the purchaser of a new condo had satisfied the requirement in s. 25(2)(d) notwithstanding that he had paid at closing only a net...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(2) - Paragraph 254(2)(a) | assignee of purchase agreement acquired condo from builder, not the assignor | 304 |
Paragraph 254(2)(e)
Administrative Policy
26 July 2013 Interpretation 149707
In finding that the rebate was not available where a corporation acquired a new residential complex as agent for an individual, CRA...
Paragraph 254(2)(g)
Cases
Canada v. Ngai, 2019 FCA 181
The taxpayer, Ms. Ngai, was a real estate agent who signed an agreement as a co-purchaser with her nephew, Mr. Ng, who intended it as his place of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Agency | rebate could not be claimed by an agent | 89 |
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 6 - Subsection 6(1) - Paragraph 6(1)(h) | cryptic Crown pleading cured by opportunity for additional written submissions | 153 |
Ranjbar v. Canada, 2016 FCA 116
The trial Judge found that a purchase of a townhome satisfied s. 254(2)(b) because at the time of the agreement of purchase and sale, the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Purpose/Intention | regard to objective manifestations of purpose | 139 |
See Also
Diktakis v. The Queen, 2016 TCC 262 (Informal Procedure)
Whether the appellant was eligible for the rebate depended in part on whether a relation of hers was the first occupant of the Quebec condominium...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 251 - Subsection 251(6) - Paragraph 251(6)(a) | taxpayer and her two years old half-sister were related | 173 |
Gill v. The Queen, 2016 TCC 13 (Informal Procedure)
The appellant was not entitled to the rebate as “at best, her occupation of the house was temporary and sporadic:” at most, following...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(2) - Paragraph 254(2)(b) | primary-residence intention determined at signing of purchase contract | 234 |
| Tax Topics - Statutory Interpretation - French and English Version | interpretation of French version confromed to prior interpretation of more ambiguous English version | 190 |
Paragraph 254(2)(h)
Administrative Policy
GST/HST Memorandum 19.3.1.2 “Stated Price Net of Rebate” December 2007
Amount of consideration where price is net of rebate
7. The “consideration” payable for the purchase of a unit is the amount to be paid for...
GST/HST Memorandum 19.3.1 “Rebate for Builder-Built Unit (Land Purchased)” July 1998
Determination of consideration
10. In addition to amounts paid or payable in respect of the purchase of the unit (e.g., the housing rebate when...
Paragraph 254(2)(i)
Administrative Policy
GST/HST Notice 323, Proposed GST/HST Treatment of Assignment Sales, May 2022
Effect of s. 192.1 on amount of rebate (p. 4 under Q.4)
- CRA noted that the amount of the rebate is based on the total tax paid and the total...
23 March 2017 CBA Commodity Taxes Roundtable, Q.21
Mr. A no longer wishes to purchase a new home and has agreed to assign the agreement of purchase and sale to Mr. B for $150,000 (representing the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(4) - Paragraph 254(4)(d) | where two successive builders, individual can file for rebate directly | 130 |
Subsection 254(3)
Forms
GST190 GST/HST New Housing Rebate Application for Houses Purchased from a Builder
Subsection 254(4)
See Also
Universo Home Construction Ltd. v. The Queen, 2019 TCC 87 (Informal Procedure)
Mr. Dhesi was the sole shareholder, director and officer of the Appellant, Universo Home Construction Ltd. (“Universo Homes”). On October 27,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Builder - Paragraph (a) | construction company qualified as beneficial owner based on bearing costs and late-executed declaration of trust, and might also qualify based on builders’ liens | 234 |
| Tax Topics - General Concepts - Ownership | construction company qualified as beneficial owner based on bearing costs and late-executed declaration of trust | 176 |
Administrative Policy
10 May 2022 GST/HST Interpretation 234662 - Ability for a joint venture operator to credit GST/HST new housing rebates to purchasers of residential condominium units
Two affiliated companies (Companies X and Y) contributed lands (held by a nominee through a bare trust agreement) to a joint venture with an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 273 - Subsection 273(1) | co-owner of condo development project could be appointed as JV operator to collect HST on condo sales and claim ITCs | 389 |
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Builder - Paragraph (a) | operator under JV for condo development with co-ownership interest in lands qualified as a builder | 337 |
GST/HST Notice 323, Proposed GST/HST Treatment of Assignment Sales, May 2022
Purchaser who purchases after receiving a taxable assignment of the purchase contract from the builder may wish to file the housing rebate...
GI-120 Assignment of a Purchase and Sale Agreement for a New House or Condominium Unit 6 July 2011
Assignment of purchase agreement is assignemtn of interest in house
This publication addresses the situation where
- a purchaser (referred to as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part I - Section 2 | 172 |
Paragraph 254(4)(a)
Administrative Policy
28 February 2019 CBA Roundtable, Q.27
Developer, which owns the land until the closings described below, enters into a Sale Agreement with the Builder to sell developed home lots and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Sale | "sale" by builder where it directed transfer of title to purchaser | 290 |
Paragraph 254(4)(c)
See Also
9118-5322 Québec inc. v. The Queen, 2018 CCI 96
Lafleur J indicated that a builder cannot deduct from net tax for the amount of new housing rebates credited to its home purchasers in a reporting...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(5) - Paragraph 254(5)(a) | transmitting purchaser new home rebate forms to CRA (or the ARQ) is imperative to the claiming by the builder of the rebate amount | 297 |
Administrative Policy
23 May 2017 Interpretation 182665
CRA was amenable to permitting new home HST rebate applications, that are provided electronically to the home purchasers, to be signed...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(5) | rebate forms can be signed electronically | 218 |
Paragraph 254(4)(d)
Administrative Policy
23 March 2017 CBA Commodity Taxes Roundtable, Q.21
Mr. A no longer wishes to purchase a new home and has agreed to assign the agreement of purchase and sale to Mr. B for $150,000 (representing the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(2) - Paragraph 254(2)(i) | fee paid for assignment of a non-builder’s new house purchase contract does not affect the GST/HST new housing rebate where assignor not a builder | 161 |
Paragraph 254(4)(g)
See Also
Sindhi v. The King, 2023 TCC 102 (Informal Procedure)
The appellant agreed in July 2016 to purchase a new home for $413,847, but by the time of the closing in March 2018, he had lost his source of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Consistency | presumption of consistent expression applied | 267 |
Subsection 254(5)
Administrative Policy
23 May 2017 Interpretation 182665
A law firm provides clients who are new home purchasers with an electronic version of form GST190 (respecting the new home rebate) and has them...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(4) - Paragraph 254(4)(c) | electronic signature possible | 91 |
Paragraph 254(5)(a)
See Also
9118-5322 Québec inc. v. The Queen, 2018 CCI 96
The taxpayer credited the new housing rebate to the purchasers of its newly-constructed homes but did not obtain the prescribed form from them due...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 254 - Subsection 254(4) - Paragraph 254(4)(c) | failure to obtain and transmit prescribed forms on timely basis | 85 |
Subsection 254(6) - Joint and Several Liability
See Also
Grands Palais du nouveau Saint-Laurent Inc. v. Agence du revenu du Québec, 2020 QCCQ 281
The Quebec new housing rebate is essentially the same as the ETA equivalent, except that entitlement to it is lost at a lower dollar level of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Residential Complex - Paragraph (b) | consideration for parking spots was part of the consideration for (condo) residential complexes for new housing rebate purposes | 333 |
GF Partnership v. The Queen, 2013 TCC 53, aff'd 2013 FCA 260
The registrant ("Mattamy"), which was a housing developer, paid municipal development levies at the time it entered into a subdivision agreement...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 153 - Subsection 153(1) | recoupment of development charges included in consideration | 211 |
| Tax Topics - Excise Tax Act - Section 154 - Subsection 154(1) | 136 | |
| Tax Topics - Excise Tax Act - Section 296 - Subsection 296(2) | 159 |