Grant – Tax Court of Canada finds that the six-month CRA filing “requirement” in s. 227.1(2)(c) is merely directory

Smith J confirmed the finding in Kalef that the appointment of a trustee in bankruptcy did not cause an individual to cease to be a director notwithstanding that the directors were no longer in control.

He also applied Kyte and Moriyama to find that the stipulation in s. 227.1(2)(c), that CRA first make proof of its claim within six months of a bankruptcy before assessing a director under s. 227.1, was merely “directory.” Accordingly, an alleged failure to satisfy s. 227.1(2)(c) did not invalidate the s. 227.1 assessment.

Neal Armstrong. Summaries of Grant v. The Queen, 2017 TCC 121 under s. 227.1(4) and s. 227.1(2)(c).