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ARTICLE · 30 MAY 2020

GST/HST Remittance Deferral: Interest-Free "Loans" May Trigger Personal Liability

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Canadian businesses are facing unprecedented times. In response, the Canadian government is announcing unprecedented support measures, including a GST/HST remittance deferral until the...

CanadaTax
Joseph Takhmizdjian
Joseph Takhmizdjian
Bobby Solhi
Bobby Solhi
Braek Urquhart
Braek Urquhart
Beverly Gilbert, C.A.
Beverly Gilbert, C.A.
Laurie A. Goldbach
Laurie A. Goldbach
Author LinkedIn connections

Canadian businesses are facing unprecedented times. In response, the Canadian government is announcing unprecedented support measures, including a GST/HST remittance deferral until the end of June 2020, for GST/HST payments or remittances (Remittance Obligations) that become owing on or after March 27, 2020.1

What you need to know

  • GST/HST collected from customers remains the property of the government.
  • Directors, trustees and partners can be held personally liable for unpaid Remittance Obligations of their company.
  • Directors that use GST/HST collected by their corporation to pay business expenses may be held personally liable by the CRA as for any subsequent failure to remit that GST/HST.

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