Deemed trust

A responsible application policy

A deemed trust is created by statute. When a person¹ has a legal obligation to collect or withhold taxes and forward these amounts to the Crown, a trust relationship known as a 'deemed trust' is created and these amounts are considered property of the Crown. If the person fails to forward these amounts to the Crown, steps will be taken by the Crown to recover the deemed trust amounts.

¹ For purposes of this publication, a 'person' refers equally to an employer who withholds and remits employee payroll deductions or a registrant who is required to collect and remit taxes on behalf of the Crown.