TCC FINDS HOUSE HELD AS INVENTORY DESPITE OCCUPANCY
Download a PDF copy of this Blog here.
As we blogged about here, the CRA continues to pursue homeowners and builders who buy, renovate or construct, and resell residential properties, often finding them liable to collect and remit GST/HST as “builders” under the Excise Tax Act (“ETA”).
A recent decision of the Tax Court of Canada (“TCC”) in Caddell v. The King, 2026 TCC 27 (“Caddell”) continues this trend, and shows the difficulties for serial home builders trying to rely on the “personal use” exemption from the GST/HST self-supply rules, even where they briefly lived in the home before selling it.
Self-Supply
As discussed in our earlier blog, the Excise Tax Act’s (“ETA”) self-supply rules can turn a home purchaser or builder who constructs or substantially renovates a residential property into a “builder”, liable to self-assess and remit GST/HST on the property’s fair market value, as though the builder had sold the home to
