Précis: CRA denied Mr. Cheema the GST/HST New Housing Rebate on the basis that his friend, Dr. Akbari, signed the agreement of purchase and sale for the home in question but, on the evidence, did not take title or contribute to the purchase price. The Tax Court allowed Mr. Cheema’s appeal on the basis that Dr. Akbari was an “accommodation party” or “bare trustee”. The decision was based on a number of earlier Tax Court decisions.
A majority of the Federal Court of Appeal allowed the Crown’s appeal declining to accept the exception that the Tax Court had devised. Webb J.A., in dissent, would have dismissed the appeal. The majority made no award of costs either in the Federal Court of Appeal or the Tax Court.
R. v. Cheema – FCA: Majority of FCA overrules the “accommodation party”/“bare trustee” exception to the GST/HST New Housing RebateREAD MORE »