Woods J. determined that a newly-constructed home acquired by the appellants from the corporate vendor ("TRG") had already been subject to the self-supply rule in s. 191(1)(b)(i) in the hands of TRG, so that the appellants were entitled under Sched. V, Part I, s. 4 to a rebate of the GST that had been charged to them on the purchase. For a number of months prior to that purchase, the house had been occupied by TRG's individual shareholder and his family under an informal oral arrangement. Woods J stated (at para. 21) that the phrase "lease, licence or similar arrangement" "encompasses...informal arrangements that give possession of property."
Woods J. also stated that "the term 'residence' has a flexible meaning which is dependant on the context in which it is used" (para. 25), and that the context of s. 191 was very different from s. 2 of the Income Tax Act, i.e. the meaning of "residence" in Thomson (para. 26).