Singh – Tax Court of Canada accepts a written director’s resignation that was not fully recorded

Similarly to ITA s. 227.1(4), ETA s. 323(5) indicates that a director’s assessment under ETA s. 323 is invalid if made more than two years after the individual ceased to be a director.

Bocock J accepted the taxpayer’s evidence that he had resigned by written letter of resignation “delivered” to the corporation (e.g., to his wife as the other director) more than two years before the s. 323 assessment, so that such assessment was invalid. He found that it was not contrary to this conclusion that the taxpayer (or corporation) had not filed a notice of change under the Corporations Information Act, and that the directors’ register (in the corporate minute book) was not fully updated to reflect the change.

Neal Armstrong. Summary of Singh v. The Queen, 2019 TCC 120 under ETA s. 323(5).