The appellants, siblings Patrizia and Joseph Nicosia, appealed GST/HST assessments related to the sale of a residential property they co-owned.
The Minister assessed them on the basis that they were builders and required to collect and remit HST on the sale.
The appellants argued the sale was an exempt supply because they had occupied the property as a residence prior to the sale.
The Tax Court found that the siblings did occupy the property as a residence before the assessed reporting periods.
Consequently, the sale was an exempt supply regardless of whether they were considered builders.
The appeals were allowed and the assessments referred back to the Minister.
