Tax Court of Canada


Goods and Services Tax


When person makes supply that is taxable, that person has to collect GST/HST

Registrant company operated transportation service business and was GST/HST registrant. In 2011, due to its financial situation, registrant began liquidating assets, notably three limousines which had been used in course of commercial activities. Limousines were sold for $105,700.00. Registrant did not collect and remit GST/HST on sales of limousines. Registrant was reassessed under Excise Tax Act. Registrant appealed. Appeal dismissed. Registrant was deemed by s. 141.1(1)(a) of Act to have made supply in course of commercial activity since limousines sold by registrant were used by it in its commercial activity. Under s. 221 of Act, when person makes supply that is taxable, that person has to collect GST/HST. Registrant should have collected $13,741.00 of GST/HST on limousines sale.

Brian & Deborah Dewan Enterprises Ltd. v. The Queen (2017), 2017 CarswellNat 3466, 2017 TCC 135, Johanne D’Auray J. (T.C.C. [Informal Procedure])

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