Adams v. Anderson, 2011 ONCA 381

The appellant and respondents were former directors of the same corporation. The appellant was assessed for the corporation's unremitted source deductions and GST and sought contribution from the respondents. The Court dismissed the appeal on the basis that ss. 227.1(7) of the Income Tax Act and 323(8) of the Excise Tax Act allow contribution from other directors only where those directors were liable for the claim. While the respondents were initially assessed for the unremitted amounts, CRA subsequently conceded in a letter that the respondents were no longer directors when the remittance failures arose. The Court found (at para. 10) that the trial judge was required to defer to CRA's determination of the respondents' tax liability.

The appellant and respondents were former directors of the same corporation. The appellant was assessed for the corporation's unremitted source deductions and GST and sought contribution from the respondents. The Court dismissed the appeal on the basis that ss. 227.1(7) of the Income Tax Act and 323(8) of the Excise Tax Act allow contribution from other directors only where those directors were liable for the claim. While the respondents were initially assessed for the unremitted amounts, CRA subsequently conceded in a letter that the respondents were no longer directors when the remittance failures arose. The Court found (at para. 10) that the trial judge was required to defer to CRA's determination of the respondents' tax liability.