If you or your corporation owe the government for unremitted HST, you want to pay attention to this. A fellow owed the government money. He sold his personal house. The mortgage company got their money and he applied the balance towards his outstanding HST balance. The CRA challenged this feeling they had higher priority than the bank. The CRA won. The bank had to take some of the proceeds used to pay off the mortgage and pay off the CRA balance.
Do you think the bank is going to change their paperwork as a result of this? I suspect loans and mortgages will be conditional on HST and payroll remittances being current.