Libfeld v. The King
Corey Libfeld
Law Firm / Organization
Aird & Berlis LLP
His Majesty the King
Law Firm / Organization
Department of Justice Canada

Context:

  • Legal Issue: Appeal from the Tax Court's dismissal of Libfeld's appeal regarding the denial of a new housing rebate (NHR) application under the Excise Tax Act.

Key Points:

  1. Background: Libfeld's appeal pertained to the Minister of National Revenue's decision to disallow his application for an NHR in respect of a property he acquired.
  2. Tax Court Decision: The Tax Court dismissed Libfeld's appeal, finding that he did not meet the requirements for the NHR as per subsection 254(2) of the Excise Tax Act. The court identified three unmet requirements:
    • Acquisition of the property from a builder of a residential complex.
    • Payment of GST/HST on the purchase.
    • First occupancy of the property after construction or renovation.
  3. Federal Court of Appeal's Decision:
    • The appeal was dismissed. The Court agreed with the Tax Court's findings and rejected Libfeld's claim that the Tax Court had erred in its decision.
    • The Federal Court of Appeal held that the Tax Court correctly applied relevant legal tests and there was no palpable and overriding error in its judgment.

Conclusion:

  • The Federal Court of Appeal's decision reaffirmed the Tax Court's findings, emphasizing the importance of meeting all the criteria outlined in the Excise Tax Act for eligibility for a new housing rebate. This case illustrates the strict application of tax laws and the necessity for clear evidence to support rebate claims.
Federal Court of Appeal
A-200-22
Taxation
Respondent
29 September 2022