The appellant appealed a director's liability assessment under section 227.1 of the Income Tax Act for unremitted source deductions by his employer, Karora Technologies Canada Inc. The appellant argued he had resigned as a director and that the underlying assessment against the corporation was incorrect.
The Tax Court found that the appellant had not validly resigned as a director because no written resignation was received by the corporation.
However, the Court held that the appellant successfully demolished the Minister's assumption regarding the quantum of the underlying assessment by presenting evidence that the T4s relied upon were inaccurate.
As the Crown presented no evidence to establish the correct amount, the appeal was allowed and the assessment was vacated.
