In Burnett v R, 2022 TCC 99, the Court rejected the taxpayer’s due diligence defence of a director liability assessment. It did not matter that the taxpayer was an “outside director” (which the evidence tended to contradict in any case). It did not matter that the unremitted amounts were supposedly “immaterial” from an accounting perspective. The appellant was not helped by his “check the box” inquiries about source deductions at board meetings. He was also not helped by failing to follow up on requests for proof of remittance payments that went unanswered. The appellant should have contacted the CRA himself or directed someone else to do it for him.
Hannah Bourgeois “Burnett v. The Queen, 2022 DTC 1069” Tax Topics no 2638 (Sep 27, 2022)
