Jacqueline Blackett

The appellant constructed a new home and sold it without occupying it.

He filed a GST/HST return late, claiming input tax credits (ITCs).

The Minister assessed him for the full GST/HST collectible, denied the ITCs because he was not a registrant, and imposed a late-filing penalty.

The Tax Court found the appellant was a 'builder' engaged in an adventure in the nature of trade, making the sale taxable.

The Court upheld the denial of ITCs but allowed the appeal in part, ordering the Minister to recompute the late-filing penalty by applying the allowable rebate against the net tax owing.

The Appellants brought motions to enforce a settlement agreement they alleged was reached with the Respondent regarding their GST/HST appeals.

The Respondent denied that an agreement was reached, arguing there was no mutual intent and no signed consent to judgment.

The Tax Court of Canada found that a binding settlement agreement had been reached through the exchange of emails between counsel, as all essential terms were agreed upon.

The Court granted the motions with costs and referred the assessments back to the Minister for reconsideration and reassessment in accordance with the settlement terms.

Following an interpleader application regarding funds held for a construction project, two creditors asserted priority claims which were dismissed.

Two other respondents took the lead in opposing these priority claims and subsequently sought their costs.

The court awarded $10,000 in partial indemnity costs to the successful respondents, to be paid equally by the unsuccessful creditors, with the award divided 60/40 in favour of the respondent who took the primary lead.

The appellant trusts appealed income tax reassessments for the 2006 and 2007 taxation years, arguing they were resident in Alberta and subject to Alberta provincial tax.

The Minister of Finance reassessed the trusts as residents of Ontario.

The court applied the central management and control test to determine trust residency.

The court found that the trustees in Alberta performed primarily administrative functions, while the actual management and control of the trust property was exercised by a beneficiary and professional advisors in Ontario.

The appeals were dismissed.

The applicant First Nation sought an interpleader order to pay a construction holdback fund into court due to multiple adverse claims from subcontractors, a garnishee, and the Canada Revenue Agency (CRA).

The court granted the interpleader, finding that the fund was neither the property of the general contractor (Razar) nor a debt payable to Razar, based on the contract terms and the Construction Act's trust provisions.

Consequently, the priority claims of the garnishee and CRA were dismissed as premature, as their claims depended on the fund being the general contractor's property.