Tax court of Canada | Tax | Income tax | Administration and enforcement
Taxpayer corporation failed to remit amounts withheld from employees for income tax and Employment Insurance. C was manager of taxpayer but in reality had limited powers and had taken position at owner’s request as owner of taxpayer was only customer of C’s business. Minister assessed C for $ 41 193,30 as jointly responsible for unremitted amounts. C appealed. Appeal allowed. Pursuant to s. 227.1(2)(a) of Income Tax Act Minister must show, on balance of evidence, not only that certificate specifying amount was registered in Federal Court, but also that there was total or partial failure to remit by company. Minister’s duty was not displaced by C’s failure to plead noncompliance in modified notice of appeal. Onus on Minister to prove that conditions in s. 227.1(2) met. Proof normally made by court certificate, writ of execution, or nulla bona return by bailiff but none of these were filed in evidence.
Custodio c. La Reine (2018), 2018 CarswellNat 990, 2018 CCI 47, Sylvain Ouimet J. (T.C.C. [General Procedure]).
