Tax Court of Canada


Income tax

Administration and enforcement

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

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]).

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