Less than subsection 22(3) in the RSTA, the ministry is considered to be the useful proprietor on the tenant's property into the extent in the tenant's RST credit card debt. In case the landlord intends to provide the products of a tenant under distraint, the landlord is needed to remit the RST owing for the ministry out with the proceeds from the sale, in precedence to all security passions including the distraint/ possessory lien for rental arrears, and obtain a Section 22 Clearance Certificate.
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When the tenant's items are distributed or bought for less than the good market place benefit, the ministry may well hold the landlord/agent answerable for the full RST believe in declare.
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Failure to remit these funds and acquire a bit 22 Clearance Certificate will bring about the landlord and/or agent staying personally chargeable for the amount of RST owing because of the tenant beneath the RSTA.
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A declare for RST collected or collectable plus penalties and desire accrued following January one, 1998 normally takes complete precedence above all protection interests, whether the safety fascination was acquired right before that day.
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