Director liability for unpaid payroll and GST/HST
Personal assessments can reach directors when a company leaves source deductions or sales tax unpaid. Here is a plain-language map of what those letters often mean.
What this is about
Canadian law treats certain payroll withholdings and collected sales tax as amounts held in trust for the Crown. If a corporation does not remit them, the agency may look past the company and assess people who served as directors. The focus is usually unremitted employee source deductions (income tax withheld, CPP, EI) and GST/HST that was collected but not remitted. Other corporate debts are a different story; these trust-type amounts get special attention.
How it usually unfolds
Collection often starts with the corporation. Statements, payment demands, and enforcement against company assets come first. When recovery from the business looks unlikely, a personal assessment against a director may follow. That personal letter is a separate step with its own response clock. People are sometimes surprised that resignation alone does not always close the window; timing of when you left the board can matter.
Deadlines people commonly watch
Many director assessments quote a 90-day period to object, counted from the assessment date on the letter. There is also commonly a two-year outer limit tied to when someone stopped being a director, but the exact start and stop dates are letter-specific. Do not guess from memory—use the date printed on the notice and the statute named in it.
What to gather before you call anyone
Bring the personal assessment or proposal letter, corporate remittance history, banking proof of what was paid, board minutes if they exist, the dates you served as director, and any payment or relief requests already filed for the company. Note whether you were a director when the remittances were due.
Important limits
This page is informational only. It is not legal or tax advice. An advisor should review your specific letter before you respond or pay.