Leonard Elias

The appellant appealed the Minister's denial of a GST/HST New Housing Rebate for a newly built residential property.

The Minister argued the appellant did not intend to use the property as a primary place of residence and did not occupy it.

The Tax Court of Canada found that the appellant had a clear and settled intention to use the property as a primary residence at the time of purchase, which was later frustrated by a change in employment and family circumstances.

The Court also found that the appellant's brief occupancy satisfied the requirement to be the first to occupy the property as a place of residence.

The appeal was allowed.

The corporate appellant, which operated a sushi restaurant, and its sole shareholder appealed reassessments for unreported income, unremitted GST/HST, shareholder benefits, and gross negligence and electronic sales suppression penalties.

The CRA conducted an audit and determined through a cash tender analysis that the restaurant's point-of-sale system had been manipulated to suppress cash sales.

The Tax Court of Canada dismissed the appeals, finding that the appellants failed to demolish the Minister's assumptions.

The Court upheld the use of the alternative assessment technique, the reopening of a statute-barred year, and the imposition of gross negligence and electronic sales suppression penalties.