substantial renovation

The owner renovated his home such that its square footage was doubled, and a garage and second floor were added. He conceded that he had not substantially renovated the existing premises. In confirming the Minister’s denial of the GST new housing rebate referred to in s. 256(2) (which was made on the basis that owner did not construct a residential complex as defined in s. 123(1)), Hershfield J. found (at para.

Russell J found that the appellant had not substantially renovated two Ontario properties, so that their sale was not made by the appellant as a “builder” and were not subject to HST under Sched. V, Pt. I, s. 2.

The taxpayer appealed a decision of the Minister to reject his claim for a GST new housing rebate on the basis that the building “looked like new”, the CRA’s analysis was flawed, and that drywall should be excluded from consideration. The appellant renovated a one-level ranch style house over 4 and one-half years. The renovated building had new external windows and doors, and the kitchen, dining area and living room had walls removed to create a great-room, with new drywall, flooring, electrical, and kitchen cabinetry.