A married couple buy a property. To claim the reduced transfer tax rate, they declare that they will use the property as their main residence. However, even before the delivery of this property, they find their dream home. It is only after the delivery of the first home that the financing of the dream home is approved. The couple argues that finding their dream home and the financing difficulties were unforeseen circumstances. If the financing had not succeeded, they would have occupied the first home as their primary residence.
Since the first residence was never occupied, the inspector imposes additional tax assessments. The legislative history cites examples such as death, divorce, job loss and accepting a job in another region or emigration, which could reasonably justify the non-occupation of the home as a principal residence. The court held that obtaining the dream home did not count as such unforeseen circumstances. Therefore, the reduced rate of 2% is not applicable. The additional tax assessments were rightly imposed.