12.11 Application To Cancel First Time Home Buyers’ Application And Obtain New Housing Credit

12.11 (1) A transferee who has applied for a first time home buyers’ exemption or refund in respect of a taxable transaction may, whether or not the transferee has received the exemption or refund, apply to the administrator

(a) to cancel the transferee’s application for the first time home buyers’ exemption or refund, and
(b) to obtain a credit under this section in respect of the tax payable under this Act on the registration of the taxable transaction by the transferee.

(2) An application under subsection (1) may only be made within 18 months after the registration date of the taxable transaction.
(3) On receiving an application under subsection (1), the administrator,

(a)
if satisfied that the transferee would have qualified for a new housing exemption or refund in respect of the taxable transaction had the transferee applied for the exemption or refund in accordance with section 12.02, 12.03, 12.04 or 12.06, as applicable, must grant the application under subsection (1) of this section and must
- (i) cancel the transferee’s application for the first time home buyers’ exemption or refund, and
- (ii) provide to the transferee a new housing credit in the amount provided for in subsection (4) of this section, or
(b) if not satisfied that the transferee would have qualified for a new housing exemption or refund had the transferee applied for the exemption or refund in accordance with section 12.02, 12.03, 12.04 or 12.06, as applicable, must refuse to grant the application and provide the transferee with written notice under subsection (8) of this section of the refusal.

(4) The amount of the new housing credit to which a transferee is entitled under subsection (3)(a)(ii) in respect of a taxable transaction is equal to the amount of the new housing exemption or refund to which the transferee would have been entitled in respect of the taxable transaction had the transferee applied for the exemption or refund in accordance with section 12.02, 12.03, 12.04 or 12.06, as applicable.
(5) In the case of a transferee who is entitled to a new housing credit for a taxable transaction and who has received a first time home buyers’ exemption or refund in respect of the tax payable on the registration of the taxable transaction, the following applies:

(a) the transferee is deemed to have received, instead of a first time home buyers’ exemption or refund, a new housing credit in an amount equal to the amount received;
(b) if the amount, under subsection (4), of the new housing credit exceeds the amount received, the administrator must pay out of the consolidated revenue fund to the transferee a refund of the tax paid by the transferee in respect of the taxable transaction equal to the difference between those amounts;
(c) if the amount, under subsection (4), of the new housing credit is less than the amount received, the transferee, from and after the date the transferee makes the application under subsection (1), is liable to pay to the administrator, as tax under this Act in respect of the taxable transaction, the amount of the difference between those amounts;
(d) if the amount, under subsection (4), of the new housing credit is equal to the amount received, no amount is payable by or to the administrator or the transferee.

(6) In the case of a transferee who is entitled to a new housing credit for a taxable transaction and who has not received a first time home buyers’ exemption or refund in respect of the tax payable on the registration of the taxable transaction, the administrator must pay out of the consolidated revenue fund to the transferee a refund of the tax paid by the transferee in respect of the taxable transaction equal to the amount, under subsection (4), of the new housing credit.
(7) If the administrator makes a determination under section 12 in respect of an application for a first time home buyers’ exemption or refund before or after the cancellation of that application under subsection (3)(a)(i) of this section, the transferee must, despite the cancellation of that application, pay to the administrator the penalty owing under section 12 in respect of the application.
(8) If an application under subsection (1) is refused, the administrator must send a letter to the applicant stating the reason for the refusal, and the letter is deemed to be a notice of assessment for the purposes of allowing the applicant to file a notice of appeal under section 19.
(9) A transferee who obtains a new housing credit under this section in an amount greater than the amount to which the transferee is entitled must pay to the administrator as a tax liability the amount by which the credit received exceeds the credit to which the transferee was entitled.

2016-3-55, effective February 17, 2016; 2024-13-174.