Tax Liability For Directors: Resignation Exception

In a recent decision from the Tax Court of Canada in  Achim Bekesinski and Her Majesty the Queen  (" Bekesinski "), the taxpayer, as director of a corporation, was personally reassessed by the Minister of National Revenue ("Minister") in the amount $477,546.08 for the corporation's unremitted income tax, employer contributions, interest and penalties for its 2001 to 2003 tax years.  This type of Assessment is commonly called a director's liability assessment.

Director was not liable for Corporation's Tax Debt

The Tax Court of Canada ("Court") held that since the taxpayer had resigned as a director of the corporation more than two years after the Minister's assessment, the Minister was statue barred from raising the director's liability assessment.