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Category: Directors

Resignation of a director

Posted on: June 17, 2024 Last updated on: June 5, 2024 Written by: John Loukidelis
The result in Ferri v R, 2024 TCC 255, is fact-driven: the court found (at para 25) In these circumstances, there is simply insufficient credible, consistent, reliable evidence to allow the Court to conclude on a balance of probabilities that…
Continue reading “Resignation of a director”…

Director due diligence

Posted on: March 21, 2024 Last updated on: March 21, 2024 Written by: John Loukidelis
Jafarnia v R, 2023 TCC 171, restates a hard truth for directors of private corporations: you will not avoid liability for unremitted source deductions if you fail to remit them because you believe the business will turn around and money…
Continue reading “Director due diligence”…

Challenging the underlying assessment

Posted on: October 6, 2023 Last updated on: October 6, 2023 Written by: John Loukidelis
Yesterday, Amit Ummat gave an excellent short presentation about director liability under the Income Tax Act and Excise Tax Act at the HLA’s 16th Corporate-Commercial seminar. He referred to Duque v R, 2020 FCA 73, in which Webb JA said…
Continue reading “Challenging the underlying assessment”…

Directors must prevent, not correct

Posted on: December 29, 2022 Last updated on: December 23, 2022 Written by: John Loukidelis
In Donaldson v R, 2022 TCC 159, the former director of an invsolvent corporation argued that he had been duly diligent and was not liable for the unremitted source deductions of the corporation. He had met regularly with the CRA…
Continue reading “Directors must prevent, not correct”…

Director’s resignation

Posted on: November 11, 2022 Last updated on: November 7, 2022 Written by: John Loukidelis
In Zvilna v R, 2022 TCC 50 (informal procedure), the Court accepted the taxpayer’s oral testimony that he had resigned from a corporation in writing even though the document in question was never entered into evidence. The taxpayer and his…
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Director liability defence fails

Posted on: October 7, 2022 Last updated on: September 29, 2022 Written by: John Loukidelis
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).…
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First director resignation ineffective

Posted on: August 31, 2022 Last updated on: August 31, 2022 Written by: John Loukidelis
In Soulliere v R, 2022 FCA 126, the appellant taxpayer had been assessed as a director of a corporation. The appellant was the incorporating director of the corporation, but he purported to resign a few weeks after its incorporation and…
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Written Resignation of a Director

Posted on: March 21, 2022 Last updated on: March 21, 2022 Written by: John Loukidelis
In Cliff v Canada, 2022 FCA 16, aff’g an unreported decision of Rossiter, CJ, on other grounds, the appellant argued that she was not liable for the unremitted HST of a corporation as one of its directors because she had…
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Section 160 and Director Liability

Posted on: August 5, 2020 Last updated on: October 2, 2020 Written by: John Loukidelis
In R v Colitto, 2020 FCA 70, rev’g 2019 TCC 88, the Court considered when the liability of a director arises under section 227.1 of the Income Tax Act (Canada) (the “Act”) for the purposes of section 160 of the…
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Director due diligence

Posted on: April 4, 2020 Last updated on: October 2, 2020 Written by: John Loukidelis
Ahmar v R, 2020 FCA 65, reminds us that a director is not duly diligent if he fails to remit HST in the hope that he can turn around the corporation’s business. This is true even where the director is…
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Negligence for not reviewing return

In 994552 N.W.T. Ltd. v R, 2025 TCC 55, Mr Justice Bocock considered whether the taxpayer corporation was liable to be reassessed beyond the normal reassessment period for two taxation years and for gross negligence penalties for overclaimed capital cost…
Continue reading “Negligence for not reviewing return”…

Guest post on the DTC

The following article on the disability tax credit was written by Tanya O’Connell, a former law clerk at Loukidelis Professional Corporation. The Disability Tax Credit (DTC) The DTC is a personal tax credit available under section 118.3 of the Income…
Continue reading “Guest post on the DTC”…

Inter-company loans

Subsection 15(1) of the Income Tax Act could apply where Aco loans money to Bco and Bco has no means of repaying the money. On the other hand, subsection 246(1) will not apply where Bco and its shareholder have no…
Continue reading “Inter-company loans”…

Change in use and flipping

The CRA has confirmed that a deemed disposition under subsection 45(1) of the Income Tax Act resulting from a change in use is not a disposition for the purposes of the flipping rules in subsections 12(12) and 12(13). See 2024-1027831C6.
Continue reading “Change in use and flipping”…

Swiss bank account trouble

In Azmayesh-Fard v R, 2025 TCC 20, the Court considered whether the CRA had properly reassessed a taxpayer beyond the normal reassessment period and imposed gross negligence penalties for unreported income from a Swiss bank account and for failing to…
Continue reading “Swiss bank account trouble”…

Recent Posts

Negligence for not reviewing return

In 994552 N.W.T. Ltd. v R, 2025 TCC 55, Mr Justice Bocock considered whether the taxpayer corporation was liable to be reassessed beyond the normal reassessment period for two taxation years and for gross negligence penalties for overclaimed capital cost…
Continue reading “Negligence for not reviewing return”…

Guest post on the DTC

The following article on the disability tax credit was written by Tanya O’Connell, a former law clerk at Loukidelis Professional Corporation. The Disability Tax Credit (DTC) The DTC is a personal tax credit available under section 118.3 of the Income…
Continue reading “Guest post on the DTC”…

Inter-company loans

Subsection 15(1) of the Income Tax Act could apply where Aco loans money to Bco and Bco has no means of repaying the money. On the other hand, subsection 246(1) will not apply where Bco and its shareholder have no…
Continue reading “Inter-company loans”…

Change in use and flipping

The CRA has confirmed that a deemed disposition under subsection 45(1) of the Income Tax Act resulting from a change in use is not a disposition for the purposes of the flipping rules in subsections 12(12) and 12(13). See 2024-1027831C6.
Continue reading “Change in use and flipping”…

Swiss bank account trouble

In Azmayesh-Fard v R, 2025 TCC 20, the Court considered whether the CRA had properly reassessed a taxpayer beyond the normal reassessment period and imposed gross negligence penalties for unreported income from a Swiss bank account and for failing to…
Continue reading “Swiss bank account trouble”…

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Archives

Categories

Recent Posts

Negligence for not reviewing return

In 994552 N.W.T. Ltd. v R, 2025 TCC 55, Mr Justice Bocock considered whether the taxpayer corporation was liable to be reassessed beyond the normal reassessment period for two taxation years and for gross negligence penalties for overclaimed capital cost…
Continue reading “Negligence for not reviewing return”…

Guest post on the DTC

The following article on the disability tax credit was written by Tanya O’Connell, a former law clerk at Loukidelis Professional Corporation. The Disability Tax Credit (DTC) The DTC is a personal tax credit available under section 118.3 of the Income…
Continue reading “Guest post on the DTC”…

Inter-company loans

Subsection 15(1) of the Income Tax Act could apply where Aco loans money to Bco and Bco has no means of repaying the money. On the other hand, subsection 246(1) will not apply where Bco and its shareholder have no…
Continue reading “Inter-company loans”…

Change in use and flipping

The CRA has confirmed that a deemed disposition under subsection 45(1) of the Income Tax Act resulting from a change in use is not a disposition for the purposes of the flipping rules in subsections 12(12) and 12(13). See 2024-1027831C6.
Continue reading “Change in use and flipping”…

Swiss bank account trouble

In Azmayesh-Fard v R, 2025 TCC 20, the Court considered whether the CRA had properly reassessed a taxpayer beyond the normal reassessment period and imposed gross negligence penalties for unreported income from a Swiss bank account and for failing to…
Continue reading “Swiss bank account trouble”…

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