A housing developer ("Mattamy") recouped the cost to it of (GST-exempt) development levies paid by it to the relevant municipality in its sales agreement with home purchasers. These amounts were found to be part of the taxable consideration for such home sales, with the result that Mattamy was found to have been understating the sales price to the purchasers. As the new housing rebates ("NHRs") of the purchasers (which they had assigned to Mattamy and which it had rebated to them as contemplated in s. 234(1)) increased as the sales price increased to $350,000, this increased taxable consideration increased the NHRs which could have been claimed on some of the sales.
Woods J found that Mattamy was not entitled to a credit under s. 296(2) for such unclaimed NHRs as Mattamy had not satisfied the requirement in ss. 296(2)(a) and 234(1) that it had credited an amount to the home purchasers under s. 254(4) in respect of such unclaimed NHRs.