Directors of a corporation can be personally liable for certain debts should the corporation be bankrupt or be unable to pay the debts.
These debts include:
- certain employee wages
- unpaid payroll remittances
- unpaid GST
Corporate income taxes owing to Canada Revenue Agency are not a personal liability of the director.
There is an exception to this:
- The directors transferred property to themselves at a time when the corporation owed corporate taxes (the transfer of property can include the payment of dividends). If the directors benefitted by receiving property or a dividend, they may be personally liable for the corporate income taxes.
Donna Carson, CGA, CIRP, Trustee
Calgary, Airdrie, Drumheller regions
403.537.7657 or 1.877.500.0792
[email protected]