The applicant, Heather Miller, sought to enforce an undertaking given by the respondents, Telemaco Matrundola and 1000125576 Ontario Inc., concerning the applicability of Harmonized Sales Tax (HST) to the sale of real property.
The parties had agreed that the purchase price would be readjusted based on a tax ruling from the Canada Revenue Agency (CRA).
The applicant obtained a CRA ruling confirming the transaction was HST exempt, but the respondents refused to comply, alleging the ruling request contained inaccurate or incomplete information regarding commercial activity on the property and the applicant's HST registration status.
The court found that the applicant had complied with the undertaking and that the information provided to CRA was accurate and complete for the purpose of the ruling.
The court emphasized its limited jurisdiction in tax matters, which fall under the Tax Court of Canada.
The application was granted, ordering the respondents to pay the withheld portion of the purchase price to the applicant with interest.
