Chen appealed a Tax Court of Canada decision, which upheld the Minister of National Revenue's dismissal of her $24,000 GST/HST tax rebate application for a newly constructed house purchased in May 2018.
The Tax Court's decision was based on Chen not meeting the conditions for a new housing rebate under the Excise Tax Act, specifically regarding the definition of a “particular individual” and their occupancy as a primary place of residence.
Key Legal Issues:
New Housing Rebate Eligibility: Determination of Chen’s eligibility for the rebate, particularly focusing on the criteria of the “particular individual” and the use of the house as a primary residence.
Bare Trust Argument: Whether the arrangement with Chen's godparents, who were added to the property title to secure financing, could be considered a bare trust, excluding them from the definition of “particular individual.”
Judgment:
Judges: Woods J.A., Locke J.A., LeBlanc J.A.
Decision: Appeal dismissed.
Reasoning:
The Court followed precedent set in "Canada v. Cheema," determining the new housing rebate was intended only for occupants or relatives of occupants.
The Court did not find Chen's bare trust argument persuasive, concluding that her godparents, as co-purchasers, were part of the “particular individual” and thus needed to meet the eligibility conditions.
Chen's argument that amendments made to the Act in 2021 should affect her case was rejected, as the decision must be based on the law at the time of the original decision.
Conclusion:
The Federal Court of Appeal upheld the Tax Court's decision, emphasizing the importance of meeting specific statutory criteria for tax rebates and the limited scope for interpretation of the term “particular individual” in the context of property purchases for rebate eligibility.
