Although assisted–living facilities (or additions thereto) normally are subject to HST on their fair market value when substantially completed, ETA s. 191.1(2) effectively deems the HST to be payable on the greater of most costs and the fair market value where the builder received government funding "for the purpose of making residential units in the complex available to [seniors]."
In finding that test should be interpreted as referring to the dominant purpose of the government funder, Owen J stated (at para. 82):
Given that the definition is pivotal in identifying when to depart from the standard rule, a reasonable degree of certainty in the scope of the definition is to be preferred over an unworkably broad interpretation that accepts any degree of purpose on the part of the grantor or organization. Such an interpretation is also consonant with the general proposition that certainty, predictability and fairness are the preferred outcome in the interpretation of tax law.
See summary under General Concepts - Intention.