An employer is more exposed to CPP and EI assessments than for income tax source deduction assessments
Two differences between an employer’s income tax, and CPP and EI, withholding or remittance obligations:
- If the employer misses the 90-day deadline to file an appeal to the Tax Court from an income tax assessment, it can file an application for a one-year extension under ITA s. 167(5) – whereas there is no such potential extension under the EI Act or CPP Act.
- The Minister may assess employers for failing to deduct or withhold and remit source deductions for EI premiums and for CPP contributions - but cannot assess an employer for income tax source deductions for resident employees if it has failed to withhold them.
Neal Armstrong. Summaries of Gergely Hegedus and Keith Hennel, “Employer Source Deductions: No Ordinary Tax Debts,” Canadian Tax Focus, Vol. 9, No. 4, November 2019, p.5 under s. 167(5) and s. 153(1)(a).