Tax court of Canada | Taxation
GOODS AND SERVICES TAX
Work to building not sufficient enough for building to be considered as having been renovated
Appeal from denial by Minister of Revenue for Quebec of application for GST rebate for new residential complex or one that had undergone substantial renovation. Cost of renovation work totalled $45,910. Application denied because interior of existing part of residence before work not renovated. Appeal dismissed. Basement could not be taken into account in determining whether minimum requirement in definition of major renovations had been met because it was only partially completed. Addition of basement even if considered habitable area and entrance hall did not double surface area of habitable areas of residence and more importantly did not create new residential complex because residence remained mostly intact. Work carried out by appellant constituted major renovations within ordinary meaning of expression and for purposes of ecoENERGY program. However, definition of expression substantial renovations in s. 256(2) of Excise Tax Act (Can.), very restrictive since it excludes work that theoretically should be considered major such as work to foundation, exterior walls, interior support walls, floors, roof and stairs. Work to building not sufficient enough for building to be considered as having been renovated or altered to such an extent that all or substantially all of building removed or renovated.
Nadeau v. Canada (May 6, 2011, T.C.C., Favreau J., File No. 2010-523(GST)I) 203 A.C.W.S. (3d) 666 (7 pp.).
