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A corporate director can avoid income tax liability for unremitted income taxes, payroll source deductions or unremitted GST under the Canadian Income Tax Act if the Canadian income tax lawyer can demonstrate that the director exercised the degree or care, diligence and skill necessary to prevent the failure to deduct, withhold or remit that a reasonably prudent person would have exercised in comparable circumstances.


"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."

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A Director can Avoid Income Tax Liability with Due Diligence
Case Analysis Tran v Queen on Demolishing the Minister’s assumption in an Income Tax Section 227.1 Director’s Liability Case – Toronto Tax Lawyer Guide
Hamad v. The Queen: A Canadian Tax Lawyer’s Perspective on Due Diligence in Director Liability for Taxes
De Facto Directorship – Directors’ Liability for Tax — Toronto Tax Lawyer Analysis
Director Liable With His Corporation
Director Liability for Unpaid Taxes – Canadian Tax Lawyer Analysis
Canada V. Chriss – Directors Tax Liability Defences – Toronto Tax Lawyer Case Comment
Concept Of De Facto Director