The appellant appealed a derivative assessment under section 323 of the Excise Tax Act for unremitted GST, interest, and penalties of a corporation of which he was the sole director.
The appellant challenged the underlying assessments against the corporation, arguing they were sent to the wrong address, failed to account for input tax credits, and incorrectly calculated net tax.
He also argued the Minister failed to meet the collection preconditions and should have assessed a de facto director instead.
The Tax Court of Canada found the preconditions were met and the appellant was the sole de jure director.
The Court rejected the input tax credit claim due to inadequate documentation.
However, the Court found the Minister incorrectly included unremitted GST from a prior period in the March 31, 2013 reporting period.
The appeal was allowed in part to reduce the assessment by $5,693.79.
