Bekesinski – Tax Court of Canada finds that a director who likely backdated his resignation should prevail – in part, because the Crown did not plead the backdating

Campbell J granted the taxpayer’s appeal from a director’s liability assessment under s. 227.1 on the basis that he had resigned more than two years previously, notwithstanding that, "in all likelihood, the Appellant backdated the Resignation."  Part of the Crown’s problem was that its pleadings had only alleged that the appellant had continued as a director rather than that the resignation had been backdated.  Accordingly, mildly plausible oral explanations of the appellant were sufficient to "demolish" this diffuse assumption.  It also did not help that the Crown’s forensic evidence of backdating was disallowed for technical reasons.

Neal Armstrong.  Summary of Bekesinski v. The Queen, 2014 TCC 245 under General Concepts – Onus and s. 227.1(4).