CRA’s seven-page GST/HST Policy Statement P-237 discusses the due diligence defense for penalties imposed under the Excise Tax Act for failure to remit or pay GST.

The Release has examples including one where the due diligence defense was accepted because the taxpayer researched product information, compared the product to similarly classified items, consulted CRA publications and the Excise Tax Act, and questioned the distributor of the product. Also, the registrant sought formal advice from an accountant, and unknowingly provided incomplete information to obtain advice from CRA officials.

In a November 22, 2005 Tax Court of Canada case, the director was assessed with personal liability for unremitted GST.

The Court noted hat the taxpayer had resigned as a director on April 21, 1997 well over two years before the date of the June 3, 2002 assessment.
Therefore, the assessment was statute-barred.

In a seven-page GST/HST Info Sheet G1- 012, CRA discuss agents and the GST implications related thereto.