- Under the Excise Tax Act, directors can be personally liable for a corporation’s unremitted GST/HST, including tax, penalties, and interest, if the corporation cannot pay.
- A former director can only be personally liable if the related Notice of Assessment was issued within two years after they stopped being a director.
- In Stevens v. The King, the taxpayer tried to avoid liability by claiming he had resigned more than two years earlier.
- The court rejected that claim because he failed to provide credible, objective evidence that he had actually resigned when he said he did.
- The case shows that avoiding directors’ liability through limitation rules is difficult and requires strong evidence.
Source: taxandtradelaw.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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