Recent regulations confirm that the GST/HST deemed trust has priority over all security interests and charges except for land or building charges. That exception has its own limitations. It is limited to the amount owing to the secured creditor at the time the tax debtor failed to remit the GST/HST. It also forces the secured creditor to look first to its other security; a kind of forced marshalling.
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Canada, Insolvency & Restructuring, Tax, Borden Ladner Gervais LLP, Debtor, Collateral (finance), Interest, Debt, Mortgage loan, Excise, Canada Gazette, Harmonised sales tax, Unemployment benefits, Secured creditor, Goods and services tax (Canada), Canada Revenue Agency, Canada Pension Plan Act 1985, Bankruptcy and Insolvency Act 1985 (Canada)
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