What happens if I collected HST from customers but did not remit it to the CRA?

Collecting HST and not remitting it to the CRA is treated seriously. The HST you collect from customers is held in trust for the CRA — it is the government's money, not yours, even though it passes through your hands. Using it for operating costs, payroll, or any other purpose while failing to remit is a significant legal and financial risk.

The CRA will assess the full amount of unremitted HST, plus interest compounded daily at a prescribed rate, plus penalties. The failure-to-file and failure-to-remit penalties can add up quickly. In cases of repeated or deliberate non-compliance, the CRA can pursue gross negligence penalties or even criminal charges under the Excise Tax Act.

Directors of corporations can be personally liable for unremitted HST under the Excise Tax Act's director liability rules — similar to payroll source deductions. This means the CRA can come after you personally if the corporation fails to remit. If you find yourself in arrears, contacting the CRA proactively, entering a payment arrangement, or exploring the Voluntary Disclosures Program sooner rather than later is the recommended path.