Canada Tax Court Issues Decision Clarifying Director’s Liability for Unremitted GST/HST, Interest

The Canadian Tax Court May 7 issued Decision No. 2026 TCC 76, clarifying a director’s liability for a company’s unremitted GST/HST. The taxpayer, the sole shareholder and a director of a retail company, acquired the company and delegated tax filing and payment responsibilities to the financial director. The company failed to remit GST/HST before it ceased operations, and the tax authorities assessed the taxpayer after unsuccessful recovery efforts against the company. The taxpayer argued that the assessment was time-barred as issued more than two years after his resignation as director. On appeal, the Tax Court found that: 1) the assessment ...