CRA Director’s Liability Assessment 2025 — Protect Your Personal Assets and Defend Against Corporate Tax Debt

When the Canada Revenue Agency (CRA) or Revenu Québec can’t collect corporate taxes, they go after the next target — you. Under the Director’s Liability provisions, corporate directors can be held personally responsible for unremitted payroll taxes, GST/HST, QST, and other corporate obligations. In 2025, CRA has expanded its enforcement capacity through AI-matching systems that automatically flag directors of delinquent corporations for assessment — even years after resignation or dissolution.

If you’ve received a Director’s Liability Assessment (DLA), the stakes couldn’t be higher. CRA can freeze your bank accounts, garnish your personal income, and place liens on your home — even if the debt wasn’t your fault. But with a strong due diligence defense, you can prove compliance, avoid penalties, and protect your assets. At Mackisen CPA Auditors Montreal, we’ve defended countless directors by dismantling weak CRA claims, proving reasonable oversight, and negotiating fair settlements that protect your financial future.

We don’t just represent directors — we protect their legacies.

Legal and Regulatory Framework

Income Tax Act (Canada)

• Section 227.1: Makes directors personally liable for unremitted source deductions (income tax, CPP, EI).

• Section 323 (Excise Tax Act): Extends liability to unremitted GST/HST.

• Section 162(1): Imposes penalties for late filings and remittances.

• Section 163(2): Adds gross-negligence penalties for false or missing reporting.

Tax Administration Act (Quebec)
Holds directors personally responsible for unpaid QST, CNESST, and other payroll obligations under provincial law.

Mackisen prepares full due diligence defense packages under both federal and Quebec statutes — ensuring your case is protected on every front.

Key Court Decisions

Buckingham v. The Queen (2011 FCA 142): Confirmed that directors must show proactive steps to prevent or correct unremitted taxes.
Wheeldon v. The Queen (1999): CRA must prove that the director had control or influence over the corporation’s financial operations.
R. v. Carroll (2008): Directors may still be liable post-resignation if CRA shows they exercised influence during the debt period.
Thibault v. The Queen (2021): Proper documentation and timely resignation filings are critical to avoid personal exposure.

These rulings prove that documentation, timing, and proactive defense are the cornerstones of protection.

Why CRA Pursues Director’s Liability

Director’s Liability Assessments are CRA’s strongest collection weapon against corporate tax arrears. Common 2025 triggers include:

• Failure to remit source deductions (payroll, CPP, EI).

• Unpaid GST/HST or QST remittances.

• Corporate insolvency, dissolution, or bankruptcy without proper clearance certificates.

• Poor recordkeeping or unfiled corporate tax returns.

• Directors unaware of their continuing obligations after resignation.

CRA doesn’t need court approval to issue a DLA — it’s automatic once corporate balances remain unpaid.

Mackisen’s Director’s Liability Defense and Resolution Strategy

1. Case Review: Analyze the DLA to identify procedural or factual errors by CRA.

2. Due Diligence Defense: Compile evidence (emails, minutes, filings) proving proactive oversight and compliance.

3. Timeline Reconstruction: Prove resignation or lack of involvement during the liability period.

4. Legal Representation: File formal objection to suspend enforcement and present full defense to CRA Appeals Division.

5. Settlement Negotiation: Pursue cancellation, reduction, or relief based on fairness and financial hardship.

Our multi-disciplinary team builds a defense that’s factual, strategic, and legally unshakable.

Real Client Experience

A Montreal director faced a $214,000 CRA Director’s Liability Assessment for unpaid payroll taxes after the company’s closure. Mackisen proved he had resigned before the debt period — CRA fully cancelled the assessment.
A Quebec business owner was personally targeted for $78,000 in GST/QST arrears. Mackisen demonstrated administrative miscommunication and obtained a 90% reduction in liability.

Common Questions

Can CRA seize my personal assets for corporate taxes? Yes, if you were a director during the debt period — unless due diligence is proven.
How long am I at risk after resigning? Up to two years after resignation or corporate dissolution. Mackisen ensures timely filings and proof of departure.
What if I never signed corporate documents? CRA focuses on de facto control — even informal involvement can create liability.
Can I negotiate a settlement? Yes, Mackisen regularly achieves reductions or cancellations through legal objection and relief applications.

Why Mackisen

At Mackisen CPA Auditors Montreal, we defend directors with a rare blend of accounting precision and legal force. We understand CRA’s collection tactics — and how to dismantle them through evidence, due diligence, and negotiation.

We fight to protect not just your assets, but your professional integrity. With Mackisen, your leadership stays respected, your finances stay secure, and your name stays clean.

Call Mackisen CPA Auditors Montreal today for your 2025 Director’s Liability Defense Consultation. The first meeting is free, and your protection begins immediately.