Award Winning Tax Lawyers in Toronto – Barrett Tax Law



Barrett Tax Law Firm | Business & Tax Lawyers in Toronto, Ontario

Consumer Choice Award 2021


Understand Your
Liabilities as a
Company Director
Let's Talk!

We've got you covered!

CRA Net Worth Audit

Schedule a Consultation

We will beat any competing quote by 20%.

Directors can be Held Liable for a Corporation’s Arrears

Under Canadian tax law, directors of a corporation can be held personally liable for some of a corporation’s tax arrears. Generally speaking, corporations are required to collect payroll source deductions and GST/HST and remit them to the Canada Revenue Agency (CRA).  These amounts collectively are referred to as Trust Amounts as they are being held in trust by a corporation on behalf of the CRA. 

Oftentimes when a corporation runs into financial trouble or mismanagement, they fail to remit these source deductions and GST/HST amounts.  Instead they use them to continue to make the payroll or pay suppliers. 

When the CRA collector believes that a corporation will be able to service this arrear they start proceedings to have the directors of the corporation be held personally accountable for the bill.

However, certain conditions must be met for the CRA to go after an individual director.

3 Ways to Schedule a Consultation




There are defences against Directors’ Liability Assessments. It would be our pleasure to provide you with a free consultation.

CALL US TODAY 1-877-882-9829