Précis: Mr. Mueller was a director of Polgercan Corp. (Polgercan). He understood that the company was winding up its business so arranged to pay the outstanding corporate debts of which he was aware. Subsequently he was assessed as a director in respect of source withholding for three corporate employees. He claimed that he was never aware of the unpaid amounts. The Tax Court found him liable because he had never made reasonable inquiries to determine the state of the employee withholdings. Thus the appeal was dismissed with costs to the Crown, subject to the right of the parties to make submissions on costs within 30 days of the decision.
Mueller v. R. – TCC: Director who didn’t inquire about unpaid source withholding liable for corporation’s failure to withhold and remitREAD MORE »