The Appellant, the sole director of a custom home building corporation, appealed an assessment under subsection 323(1) of the Excise Tax Act for the corporation's failure to remit GST/HST.
The corporation experienced financial difficulties and rented out two newly built properties, triggering the self-supply rules and liability for GST based on fair market value.
The Appellant argued he exercised due diligence by injecting personal funds to keep the corporation viable and that the corporation did not receive proceeds of sale to remit.
The Tax Court of Canada dismissed the appeal, finding that the Appellant failed to demonstrate he was specifically concerned with tax remittances and did not take proactive steps to prevent the failure to remit, such as instructing his lawyer to set aside GST/HST amounts in trust.
