It’s not what you owe, it’s who you owe;
The Trudeau government let more than $67 million in GST go uncollected from a start-up airlines over the past several years.
Now the red-faced government is looking to sweep the matter under the rug, claiming privacy concerns.
In November, the Federal Court in Ottawa ordered all “real properties and immovables” of Flair Airlines be seized and sold to recoup $67,174,123 in back taxes. When the story broke in January, the company tried to dismiss concerns about the payments as relating to import duties, except airplanes aren’t subject to import duties.
There is however a requirement to pay 5% GST at time of import, something Flair appears not to have done as they brought 20 Boeing 737 MAX aircraft over the past several years. The amount owed by Flair matches the GST due on the aircraft but neither the government nor Flair is willing to say much.
On Feb. 20, that writ of seizure was quietly rescinded after the government and Flair came to an agreement on paying back the money. The agreement comes after months of high-powered lobbying of several ministries and the prime minister’s office by Liberal insiders.