The appellant, sole director of a construction company, appealed an assessment for unremitted GST/HST and related interest totaling $29,075.41 under section 323(1) of the Excise Tax Act.
The appellant argued the assessment amount was incorrect and that he had exercised due diligence by hiring an accountant to handle the company's tax obligations.
The Tax Court of Canada dismissed the appeal, finding the appellant failed to provide documentary evidence to rebut the Minister's assumptions regarding the tax debt.
Furthermore, the court held the appellant did not establish a due diligence defence, as he was aware of the company's tax issues but failed to take positive steps to prevent the failure to remit, instead relying entirely on an accountant in whom he had lost confidence.
