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NEW In-House Counsel | Insurance | Intellectual Property | Immigration | Natural Resources | Real Estate | Tax

GOODS AND SEVICES TAX (GST) - Collection and remittance - Deemed trust

Tuesday, July 17, 2018 @ 9:58 AM  

Application by the Crown for money that a bank received from a customer in payment of a loan secured by a mortgage. The customer collected but failed to remit GST. The bank granted him a mortgage secured upon his house, without being aware of the GST debt. He sold the house and paid the mortgage from the proceeds of the sale. The Crown sought payment from the bank on the basis of the deemed trust mechanism of the Excise Tax Act (ETA). The bank said that...