Thank you very much for your prompt reply. I apologize for the message "this is a test" however I have been experiencing some problems with blogs that are partially completed and then for no apparent reason completely disappear from the website. I have emailed this problem to the webmaster, but he has never returned my email. I have now chosen a different approach to this problem and hopefully this will resolve this situation..
As noted in your recent blog and as I understand it, you and your ex-husband were operating an unregistered sole proprietorship moving all funds into and out of a joint personal bank account. This practice is not illegal and is being done in thousands of small businesses all across Canada. Your ex-husband has been reporting all profits and losses as a sole proprietorship on his personal tax returns while you have not reported any profits or losses on your personal tax returns. I have no problem with this arrangement. However, where the situation takes a turn is in the registration of the GST ( Gouge and Screw Tax ) license. If this business was a sole proprietorship and the evidence certainly indicates that it was, why was this GST license set up in both your name and your ex-husband's name? I can only surmise that because the business was operated through a personal joint bank account that it was felt that the GST license must also be in joint names. Just because a business is operated through a joint bank account, it doesn't necessarily follow that all further transactions, ( i.e. the acquisition of a GST license ) must also be in joint names, especially when the business is operated as a sole proprietorship. However, having said that, we now have to deal with the situation at hand.
Any government license that is issued to any one person or a partnership ( whether the business is registered or not ) for the sole purpose of the collection of monies on behalf of the government are trust monies and the individual(s) is/are personally responsible for the payment of these trust monies whether the funds are available or not. When this GST license was issued to both you and your ex-husband, both of you are liable for the payment of these trust monies "jointly and severally". What this means in layman's language is that if one party does not pay these trust monies to the government for whatever reason, the government can go after the other party for the payment of these trust monies even though this other party had no involvement in the business. The fact that your name appeared on the license authorizes the government to pursue you for collection of any alleged unpaid trust monies. Whether the government will undertake such action is another matter.
In your original blog, you raised the question of the Statute of Limitation periods. Any monies owing to any government or agency thereof, there is NO limitation period. Both the federal and provincial/territorial governments have enshrined in their legislation the "right of set-off". What that means is simply this. If the government owes you money ( e.g. income tax refund, the quarterly GST refund, etc. ) and you owe the government money ( e.g. income tax payable, GST collected but not remitted, etc. ) then the government can subtract any monies that you owe the government from any monies the government owes you. In addition, if this arrangement will not satisfy the debt that you owe the government, they retain the right to seize your bank accounts and garnishee your salary including pensions without having to obtain a judgment or a court order. Something to think about.
In a further reply you indicated that when your ex-husband went bankrupt, he included the GST as part of his total debts owing. I queried you on this matter and asked if you had proof that this debt was included in the bankruptcy. You indicated that you had received a copy of the bankruptcy papers, and while you currently cannot locate them, you believe that this debt was included. While I am not an expert on bankruptcy matters, there are 3 types of debts that are not included in a bankruptcy filing. They are alimony and child support obligations, trust monies and certain portions of some student loans. I would be shocked if a Federal bankruptcy judge allowed the inclusion of trust monies owing to the government as part of the bankruptcy filing. However, you can include unpaid personal income taxes owing in a bankruptcy filing. I would strongly suggest that you further consider checking into this matter.
In summary, I would strongly suggest that you contact your local CRA office and set up an appointment on a one-to-one basis to openly discuss this GST account and determine where all the alleged amounts owing, including any interest and penalties, are coming from. At this meeting, do not admit to any liability or commit to any payment plan. It is simply an exploratory meeting to determine where you stand. Ask for a copy of this statement so that you can study it further. If they are unable to provide you with a copy of the statement at this meeting, ask them to mail you a copy. After you receive a copy of this statement either in person or by mail, I want you to sleep on it for a few days before reviewing it again. It's amazing how some things look after you have had a chance to set it aside for a few days before reviewing it again. By this time, you will have calmed down and hopefully you will be able to recall some previous events that might explain the situation.
Feel free to blog on this site again or send me a PM (Private Message ). If I can offer any further assistance, I will be happy to do so.
Good Luck and have a GREAT DAY