Corporations And Directors Liabilities

Directors of a corporation can be personally liable for certain debts should the corporation be bankrupt or be unable to pay the debts. These debts include:     - certain employee wages     - unpaid payroll remittances     - unpaid GST Corporate income taxes owing to Canada Revenue Agency are not a personal liability of the director. There is an exception to this:     -  The directors transferred property to themselves at a time when the corporation owed corporate taxes  (the transfer of property can include the payment of dividends).   If the directors benefitted by receiving property or a dividend, they may be personally liable for the corporate income taxes.      Donna Carson, CGA, CIRP, Trustee Calgary, Airdrie, Drumheller regions 403.537.7657  or  1.877.500.0792 donna.carson@mnp.ca