The Appellant, a director of a transportation company, was assessed for the company's failure to remit GST net tax and source deductions.
During a financial crisis, the Appellant prioritized paying employees and creditors over remitting taxes to the CRA.
The Tax Court of Canada found that the Appellant did not exercise the degree of care, diligence and skill to prevent the failure to remit that a reasonably prudent person would have exercised in comparable circumstances.
The appeal regarding source deductions was dismissed.
The appeal regarding GST was allowed in part, on consent, to reduce the assessed amount to the amount certified by the Federal Court.
