Cases
Drover v. Canada, 98 DTC 6378 (FCA)
Before remitting the case to the Tax Court, Robertson J.A. noted that unlike the due diligence defence under s. 227.1 of the Income Tax Act, under...
Subsection 323(1) - Liability of Directors
Cases
Duque v. Canada, 2020 FCA 73
The taxpayer was the only director of a corporation which had been assessed for unremitted GST on taxable supplies made by it. It did not object,...
Gougeon v. Canada, [2013] GSTC 42, 2012 FCA 294
The appellant was assessed in respect of approximately $10,000 of GST which was allegedly unpaid by the corporation of which he was the sole...
See Also
Delia v. Agence du revenu du Québec, 2018 QCCQ 9487
The ARQ commenced a QST audit of a corporation (Motostar) after its voluntary dissolution by its sole individual shareholder (Delia) and assessed...
Le v. The Queen, 2018 TCC 65 (Informal Procedure)
The taxpayer had intended to form a partnership with another party, who was under the misapprehension that a corporation was required in order to...
Koskocan v. The Queen, 2016 TCC 277
The taxpayer, sold all the shares of a corporation (“9056”) operating a pizzeria, resigned as director, but continued to sign cheques for 9056...
MacDonald v. The Queen, 2014 DTC 1212 [at at 3839], 2014 TCC 308 (Informal Procedure)
After being approached by the incorporator ("Marney") of a pub, the appellant subscribed $10,000 for shares as a passive investment. He became an...
Mignardi v. The Queen, [2013] GSTC 39, 2013 TCC 67 (Informal Procedure)
The Minister assessed the appellant for director's liability in respect of a corporation that had not remitted net tax for reporting periods...
Chell v. The Queen, 2013 DTC 1055 [at at 299], 2013 TCC 29
The taxpayer was a director of an Alberta corporation ("cDemo") and a Delaware corporation ("Global"). Both corporations owed Canadian source...
D'Amore v. The Queen, 2013 DTC 1005 [at at 33], 2012 TCC 373
The taxpayer directed a tavern business whose main clientele were university students. Payroll and GST/PST remittances were handled by his...
Savoy v. The Queen, 2011 TCC 35, [2011] GSTC 15
After finding that the assessment of the appellant under ss 323 was not valid by virtue of s. 323(2)(b) as a certificate was not registered in the...
Nachar v. The Queen, 2011 TCC 36, [2011] GSTC 12
After finding that the taxpayer director had shown due diligence respecting the failure of his corporation to remit GST on one category of its...
Mosier v. The Queen, [2001] GSTC 124 (TCC)
Bowman A.C.J. found that the taxpayer's appointment as president of a failing business corporation, which entailed broad management powers, did...
Siow v. The Queen, [2011] GSTC 99, 2011 TCC 301
The taxpayer was liable for unremitted GST as a director of his business corporation, notwithstanding a finding that the Minister failed to...
Lau v. The Queen, 2002 DTC 2212 (TCC)
The taxpayer was not a director on the basis only of various unsigned documents in the minute book designating her as a director.
Subsection 323(2)
See Also
Canada v. Colitto, 2020 FCA 70
The taxpayer’s husband (Mr. Colitto) was acknowledged to be liable under s. 227.1 for the failure of his corporation to remit source deductions...
Paragraph 323(2)(a)
See Also
Archambault v. Agence du revenu du Québec, 2018 QCCQ 3291
The Quebec equivalent of ETA s. 323(2)(a) (in s. 24.0.1(a) of the Quebec Tax Administration Act) requires as a precondition to assessing a...
Paragraph 323(2)(b)
See Also
Savoy v. The Queen, 2011 TCC 35, [2011] GSTC 15
The appellant resigned as director in June 2000 when his company ceased operating, but the resignation was not valid because no one was appointed...
Paragraph 323(2)(c)
Cases
Moriyama v. Canada, 2005 FCA 207
The taxpayer, who was a director of a bankrupt company, argued that the Minister had failed to file a proof of claim within six months from the...
Subsection 323(3) - Diligence
Cases
Ahmar v. Canada, 2020 FCA 65
After the corporation (“Strong Forming”) of which the taxpayer (Mr. Ahmar) was the sole shareholder, director and officer began to run out of...
Jarrold v. Canada, 2010 FCA 278
The appellant argued that the Tax Court judge erred in law in his application of the due diligence defence when he dismissed, as irrelevant,...
Liddle v. Canada, 2011 DTC 5083 [at at 5838], 2011 FCA 159
The taxpayer's appeal from liability under ss. 227.1 of the Income Tax Act and s. 323 of the Excise Tax Act was denied, given that the taxpayer...
Canada v. Buckingham, 2011 DTC 5078 [at at 5810], 2011 FCA 142
The taxpayer was a director in a corporation that was in arrears on source deductions. He attempted to address the arrears through an equity...
Jobin v. Deputy Minister of Revenue for Québec, 2003 DTC 5043 (Cour du Québec (Civil Side))
The taxpayer had failed to establish due diligence under s. 24.0.2 of the Loi Sur le Ministére du Revenu given that he and the corporation had...
See Also
Penate v. The Queen, 2020 TCC 63
The taxpayer, Ms. Penate, was the sole director and shareholder of a roofing company (the “Company”) that fell behind in its GST/HST...
Delia v. Agence du revenu du Québec, 2018 QCCQ 9487
The appellant (“Delia”) had been the sole shareholder and director of a corporation (“Motostar”) engaged in a recreational vehicle sales...
Tozer v. The Queen, 2018 TCC 56
The taxpayer was the sole director (as well as CEO) of Atcon Group companies, including “Atcon” and “NB Inc.” In September 2008, the CRA...
Maxwell v. The Queen, 2015 DTC 1102 [at 610], 2015 TCC 74
The appellant, a professional engineer, had three related companies (the "Three Companies") which entered into a contract with a developer to...
Mignardi v. The Queen, [2013] GSTC 39, 2013 TCC 67 (Informal Procedure)
It was unnecessary to evaluate the appellant's due diligence arguments, but Paris J found that they would not have succeeded. The essence of the...
Deakin v. The Queen, 2012 DTC 1231 [at at 3634], 2012 TCC 270
Boyle J. found that the taxpayers did not have a due diligence defence for unremitted source deductions and GST collections because, regardless of...
Martin v. The Queen, 2012 DTC 1253 [at at 3725], 2012 TCC 239
Angers J. found that the taxpayer, who was a director of two corporations forming part of a related group, was liable for unremitted income tax...
Thomas v. R., [2011] GSTC 129, 20112011 TCC 421
The Appellant (an optometrist practising in Unity and Meadow Lake, Saskatchewan), who owned 75% of the shares of a corporation holding three...
Nachar v. The Queen, 2011 TCC 36, [2011] GSTC 12
The taxpayer (“Nachar”) was the sole director of a corporation (“Naza”) which operated a Mohawk/Husky (MH) gas station. GST had not been...
Power v. The Queen, [2011] GSTC 114, 2011 TCC 369 (Informal Procedure)
In rejecting a submission of the second appellant (Mr MacKay) that he had satisfied his due diligence defence by delegating management of the...
Snively v. The Queen, 2011 TCC 196 (Informal Procedure)
The appellant was the sole shareholder and sole director of a construction and heavy equipment rental business corporation (JDR). JDR had made...
Lau v. The Queen, 2002 DTC 2212 (TCC)
The taxpayer exercised due diligence in leaving the bookkeeping work to his wife who had relied on an accounting firm for any assistance she...
Administrative Policy
4 December 2014 Internal T.I. 2014-0531251I7 - Directors' Liability
A limited partnership, which shortly will be declared bankrupt, failed to remit income tax source deductions and GST/HST. Would the general...
Subsection 323(5) - Time Limit
Cases
Gagné Estate v. Canada, 2023 FCA 9
The deceased (Gagné) was assessed on May 22, 2013 under ETA s. 323 respecting unremitted net tax of a corporation that was majority-owned by him...
Soulliere v. Canada, 2022 FCA 126
The taxpayer was named as the sole incorporating director of an Ontario corporation, and a few weeks later he submitted a written resignation as...
Cliff v. Canada, 2022 FCA 16
ITA s. 227.1(4) and ETA s. 323(5) indicate that a director cannot be assessed for unremitted corporate source deductions or GST more than two...
See Also
Singh v. The Queen, 2019 TCC 120 (Informal Procedure)
Bocock J accepted the taxpayer’s evidence that he had resigned by written letter of resignation dated effective June 11, 2011 and had...
Tozer v. The Queen, 2018 TCC 56
In March 2010, two companies of which the taxpayer was the director were assigned into bankruptcy and a receiver and receiver manager (EY) was...
Marra v. The Queen, 2016 DTC 1028 [at 2696], 2016 TCC 24
A company (financed by the appellant's husband but which has been run by a questionable character) was on shaky financial grounds, and her husband...
Mignardi v. The Queen, [2013] GSTC 39, 2013 TCC 67 (Informal Procedure)
The appellant was unsuccessful in a submission that he had ceased to be a director of a corporation at the time of a meeting between him and...
Thomas v. R., [2011] GSTC 129, 20112011 TCC 421
Although the corporation of which the Appellant was a director was struck from the Saskatchewan Corporate Register more than two years before the...
Snively v. The Queen, 2011 TCC 196 (Informal Procedure)
The appellant, who was the sole shareholder and director of a corporation with a rental business, was found to be deemed by s. 115(4) of the...
Savoy v. The Queen, 2011 TCC 35, [2011] GSTC 15
The appellant resigned as director in June 2000 when his company ceased operating, but the resignation was not valid because no one was appointed...
Subsection 323(8) - Contribution
Cases
Adams v. Anderson, 2011 ONCA 381
The appellant and respondents were former directors of the same corporation. The appellant was assessed for the corporation's unremitted source...