How Two Brothers Won Their GST Housing Rebate After CRA Said No
Two brothers from Kleinburg, Ontario, just won their fight for the GST/HST New Housing Rebate. Each received about $24,000 after the Tax Court accepted that they intended to live in their homes. The ruling shows how intent and proof can overturn a denial.
Why this case matters
The CRA often denies the rebate when it believes a buyer planned to flip. The Court focused on one test. Did the buyers intend to use the home as a primary residence when they became liable under the purchase agreement or assignment?
What happened
In 2019 a subdivision opened near the family home. The parents wanted each son to live nearby.
• Vince signed for a property at 59 Galen Crescent in April 2019.
• Jordano’s mother signed for a home at 27 Ryerson Drive and assigned it to him in February 2021, just before closing.
The parents paid the deposits. Both brothers took mortgages for the balance.
CRA’s position
The CRA said the brothers never meant to live in the homes. It suggested the family wanted to profit. It also questioned affordability. In Court, Crown counsel admitted there was no proof for those profit claims.
Evidence that persuaded the Court
Vince planned to move out and live on his own. Health issues arose near possession, and he entered treatment. He sold the home soon after.
Jordano moved in with his partner. They furnished the house, added a pool table, set up a garage gym, and hung their dogs’ portraits. After six months they sold due to strain on the relationship.
The judge found the witnesses credible. The evidence fit real life. The Court allowed both appeals and sent the files back for reassessment.
The legal test in plain language
Under the Excise Tax Act, paragraph 254(2)(b), you must intend to use the home as your primary place of residence at the moment you become liable under the agreement. Intent at signing is the key. Later events can change plans, but they do not erase genuine intent at the start.
How to show intent if CRA challenges you
• Keep a simple intent letter or email to yourself when you sign.
• Update your driver’s licence, health card, or voter info once you move.
• Keep moving receipts, utility setup records, and insurance binders.
• Save texts and emails about furnishing, repairs, or move-in dates.
• Document reasons if you sell soon after. Life happens. Record it.
Common red flags to expect
• A sale shortly after closing without a clear reason.
• Multiple properties closing around the same time.
• Little proof of move-in steps.
• Ads or listings created before possession.
• Income or financing gaps that suggest the home was never affordable.
Practical tips for buyers and advisors
• Align your paperwork with your plan from day one.
• If an assignment occurs, keep the timeline and intent memo.
• Use a simple checklist for occupancy steps.
• If circumstances change, gather documents that explain why.
• Respond to CRA with clear, dated evidence instead of long narratives.
Key takeaway
The rebate turns on intent at the time of the agreement. Credible, consistent evidence wins. The Lisi decision shows that real-life setbacks or relationship changes do not defeat a valid claim when your initial intent was to make the home your primary residence. For more information , please read https://www.canlii.org/en/ca/tcc/doc/2025/2025tcc106/2025tcc106.html
For more information – please watch https://youtu.be/dOferkVyOLI?si=LxrURzGMoDuvOE-N
Need help?
If CRA has questioned your rebate, we can help you organize evidence and respond.
Email: aman@cloudiverse.ca | Phone: 604-200-4027
Disclaimer: This article is for education only and is not legal or tax advice.