CRA AUDITS PURPOSE-BUILT HOUSING REBATE
CRA REBATE ADMINISTRATION LEADS TO MANY DENIALS
When Prime Minister Justin Trudeau’s Liberal government announced its new 100% GST rebate for tax paid on the construction of qualifying new rental housing in September 2023 (which we blogged on here), the measure – formally called the Enhanced GST New Rental Housing Rebate – was unveiled with considerable fanfare. In fact, it was touted as a key pillar of Canada’s renewed national housing strategy, and designed to reduce development costs, accelerate construction of much-needed rental units and increase long-term affordability for renters across Canada.
That fanfare has now met the practical reality of tax auditors at CRA charged with reviewing and auditing these Rebate Applications. In fact, CRA is now actively auditing in this area and rejecting a number of Rebate Applications for failing to meet the very complicated rules that came with the new Rebate process.