Homeowners who claim New Housing Rebate often face Canada Revenue Agency ("CRA") review. The central issues in these cases are often whether the homeowners intended to use the subject home as a primary place of residence (or for some other purposes) and whether the home was in fact occupied as a place of residence following construction or renovation.
While the Tax Court of Canada ("TCC") has traditionally adopted a fairly rigorous approach when interpreting and applying these two requirements, two recent TCC decisions seem to reflect a more flexible approach, perhaps aligning with modern housing realities.
Sharma v. The King
In Sharma, (2025 TCC 145), a young couple purchased a newly constructed home, which they described as their "dream home". But after closing, they only spent limited time there, attributable to "work commitments", and spent many weekends at their parents' homes. The couple rarely cooked at the new home and never did any laundry there. The couple then
