Focus on Tax Law: On the Hook? Director's Liability Under the ETA in Insolvencies and Bankruptcies
Overview
A director of a corporation has numerous legal duties and obligations under a variety of statutes. However, some of these duties and obligations may not be so clear when the corporation is insolvent or bankrupt. Clarity during such times has become increasingly important for directors due to the current state of the global economy.
For example, we have received an increasing number of enquiries from directors of companies that are in receivership or bankruptcy regarding a notice of reassessment they received with respect to outstanding amounts of GST/HST owed by the company. The obvious initial questions we are asked are: What is my responsibility? and could I be personally liable?