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GST/HST — new housing rebate

My client separated from his wife, without a formal separation agreement, and bought himself a condo, located much closer to his workplace and to his travel needs than the family home. He applied for and received a new housing rebate of some $27,000 on buying the condo. A few months later, he reconciled with his wife and moved back to the family home, though he still travelled a lot on business and still used his condo some of the time.

Some 18 months later, the CRA assessed my client to take away the rebate, expressing the view that the condo was not his "primary place of residence" because he still lived in the family home.

I filed a Notice of Objection on behalf of the client, documenting with numerous supporting affidavits from co-workers and acquaintances that my client had indeed had marital problems and had separated from his wife for a period of time. I also documented the extensive furniture purchases and upgrades my client had bought for the condo, as he customized it for his own needs. Finally, I demonstrated that the condo had no other purpose than to be his primary residence when he moved out: he was not "flipping" it, he was not renting it, and it was not a vacation property. It was nothing other than his home. All of this documentation filled a binder, with a 19-page letter that set out in detail why my client was entitled to the rebate.

The CRA Appeals Officer examined my letter and documentation and, without further ado, accepted the submission and allowed the rebate.

Problem vanished!

(2013)