In Airport Auto (2003 GTC 899-105), CRA (the Canadian Income Tax Agency) attempted to force a purchaser to pay GST again after the vendor did not remit the tax. The court dismissed CRA’s argument and held that, based on simple agency law, the payment of the tax to a vendor as the Crown’s agent extinguishes the payer’s liability to pay the tax in the absence of fraud or collusion or explicit statutory language to the contrary; any other outcome would be "ludicrous."
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