Adam Serota

The appellants built a custom home and moved in while the wife recuperated from breast cancer treatments.

They sold the home shortly after her surgery and moved back to their previous community.

The Minister assessed them for GST/HST and penalties on the basis that they were builders who constructed the home as an adventure in the nature of trade.

The Tax Court of Canada allowed the appeals, finding that the idiosyncratic features of the home and the circumstances of the sale demonstrated they built the home for themselves, not for resale.

The appellant appealed assessments denying Input Tax Credits (ITCs) claimed for his horse farming operation under the Excise Tax Act.

The Minister disallowed the ITCs on the basis that the appellant did not carry on the farm business with a reasonable expectation of profit, and thus it was not a commercial activity.

The Tax Court of Canada applied the Moldowan criteria, noting a consistent history of significant farming losses and a lack of financial records or business planning.

The Court concluded the appellant failed to demonstrate a reasonable expectation of profit, and dismissed the appeals without costs.