Two brothers from Kleinburg, Ontario, have successfully overturned federal tax assessments that denied them each a $24,000 GST/HST New Housing Rebate on homes they purchased in 2019. In Lisi v. The King, 2025 TCC 106 (CanLII), the Tax Court of Canada ruled that Vince and Jordano Lisi were entitled to the rebates, sending the matter back to the Minister of National Revenue for reassessment.
The dispute centered on whether the brothers intended to use their newly built homes as their primary residences at the time they became liable under their purchase agreements, a requirement under section 254(2)(b) of the Excise Tax Act. The homes, located in the same subdivision near their parents’ residence, were purchased when new builds in the area were offered at prices their parents considered affordable. Both agreements were signed on the same day in April 2019, with their parents covering all deposits and mortgages arranged for the remaining amounts.
Vince, born in 1996, initially pushed for the purchases, telling the court he was eager to leave his parents’ house. He agreed to buy a property on Galen Crescent for nearly $1.163 million. However, by the time of closing in January 2021, he was struggling with addictions to alcohol and hard drugs that made independent living impossible. He entered treatment instead of moving in, and sold the property in April 2021 for $1.687 million. Vince has since maintained sobriety for over two years, married in 2025, and now lives in a condominium in Kleinburg.
Jordano, born in 1998, moved into his Ryerson Drive home in March 2021 with his girlfriend, Jade Masiello, and their pets. The couple furnished the home extensively, converted rooms for recreation and exercise, and set up household services. After about six months, however, they found that living together at a young age strained their relationship. They decided to live apart and listed the home for sale in October 2021, selling it the next month for $1.9 million. The relationship endured, and Jordano recently purchased another home.
The Canada Revenue Agency had denied the rebates on the basis that neither brother intended to make their property their primary residence at the relevant time, arguing instead that the purchases were made to turn a profit. Crown counsel also suggested the homes were not financially feasible for the brothers to maintain and cited the family’s history of selling homes for profit. The court found no factual basis for these claims, noting that the Crown called no witnesses and conceded a lack of supporting evidence.
Justice David E. Spiro found the testimony of both brothers, their mother, and Jade to be credible and sufficient to disprove the Minister’s assumptions. He concluded that each brother intended to occupy their home as a primary residence when they entered into their purchase agreements. The appeals were allowed without costs, with the assessments sent back to the Minister for reconsideration and reassessment on the basis that each brother qualifies for the GST/HST New Housing Rebate.
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