Director assessed for company’s non-remittance of employees’ income tax and net GST/HST

Tax court of Canada | Tax | Income tax | Administration and enforcement

Director was sole director of company F Ltd.. Company paid its employees wages net of source deductions and generated net GST/HST but did not remit these amounts. Director was assessed for company’s non-remittance of employees’ federal and provincial income taxes for four years, for company’s non-remittance of net Good and Services Tax/ Harmonized Sales Tax (GST/HST) for 2.5 years, and for company’s non-remittance of employment insurance (EI) premiums and Canada Pension Plan (CPP) contributions for four years. Director appealed. Appeals dismissed. Director did not establish entitlement to due diligence defence. Director’s general focus was to continue with non-remittances while keeping his company going so that in longer term someone would buy or invest in company so he could obtain funding to reimburse Canada Revenue Agency (CRA). Director did not take steps to stop failures to make remittances. CRA was pursuing director for payments more than director was engaged in seeking to satisfy CRA for continuing non-remittances. 

Fox v. The Queen (2018), 2018 CarswellNat 724, 2018 CarswellNat 918, 2018 TCC 43, 2018 CCI 43, B. Russell J. (T.C.C. [Informal Procedure]).

Free newsletter

Our newsletter is FREE and keeps you up to date on all the developments in the Ontario legal community. Please enter your email address below to subscribe.

Recent articles & video

From ignored to a nation-to-nation relationship: Jason Madden’s 20 years advocating for Metis rights

Ontario Superior Court of Justice welcomes new judges Colin Stevenson and Gilead Kay

Ontario Superior Court upholds award of costs exceeding the damages in a personal injury case

Ontario Superior Court resolves estate dispute between siblings by passing over a sister as trustee

Erika Chamberlain steps down as dean of Western Law

Ont. CA orders new trial in pedestrian collision case due to unfair bad character evidence

Most Read Articles

Erika Chamberlain steps down as dean of Western Law

Ont. CA orders new trial in pedestrian collision case due to unfair bad character evidence

Ontario Superior Court of Justice welcomes new judges Colin Stevenson and Gilead Kay

From ignored to a nation-to-nation relationship: Jason Madden’s 20 years advocating for Metis rights