Précis: Mr. Cheema enlisted the help of a friend, Dr. Akbari, to co-sign an agreement of purchase and sale for a new home as well as the mortgage on the property. Both Mr. Cheema and Dr. Akbari testified that Dr. Akbari did not contribute to the purchase price or the maintenance of the home and did not have any interest in the property. The Court accepted that evidence and ruled that the relationship was one of “bare trust”. As a consequence Mr. Cheema was entitled to the HST new housing rebate on the home (which CRA had denied) and allowed the appeal. There was no order as to costs since this was an informal procedure appeal.
Cheema v. R. - TCC: Bare trust did not deprive taxpayer of HST new housing rebateREAD MORE »