- CRA targets corporate directors in the residential real estate industry for GST/HST liabilities.
- Ayoub v. the King case highlights the risk of personal liability for directors of home building corporations.
- The Appellant was held personally liable for unremitted GST/HST despite injecting personal funds into the corporation.
- The court rejected the due diligence defense, emphasizing prevention over curing tax failures.
- Directors should instruct lawyers to withhold GST/HST on property sales and consult accountants before renting properties.
- The case underscores the complexity of GST/HST rules and the importance of legal advice.
- Renting newly built or renovated homes can trigger tax liability and personal risk for directors.
- Professional advice is recommended before and after CRA assessments.
Source: taxandtradelaw.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
