Duque - Federal Court of Appeal finds that a director was able to establish that CRA had incorrectly included holdbacks in the corporate assessment

Webb JA confirmed that a director who was assessed under ETA s. 323 for failure of the corporation to remit GST can challenge the correctness of the assessment of the corporation for the unpaid GST, even where it had failed to do so. Here, the director was able to establish that the corporate taxable billings assessed by CRA had incorrectly included construction lien holdback amounts, even though ETA s. 168(7) deemed there to be no GST payable on the holdback amounts until they became payable.

Neal Armstrong. Summaries of Duque v. Canada, 2020 FCA 73 under ETA s. 323(1) and s. 168(7).