CRA Director’s Liability Defense 2025 — Protect Your Personal Assets, Stop CRA Collections, and Defend Your Reputation with Mackisen CPA

CRA’s Director Liability Program is targeting more business owners, executives, and board members than ever before. When a corporation fails to remit payroll, GST/HST, or source deductions, CRA can personally pursue directors for the full amount owed — even years after the company’s dissolution. Many honest business leaders are being blindsided with personal reassessments, bank freezes, and wage garnishments for debts they didn’t directly control. At Mackisen CPA Auditors Montreal, we defend corporate directors against unfair CRA claims. Our CPA auditors and tax lawyers challenge CRA’s assumptions, prove due diligence, and protect personal assets from seizure. We don’t let CRA turn business challenges into personal financial crises — we restore protection, credibility, and peace of mind.

Legal and Regulatory Framework

Income Tax Act (Canada) Section 227.1(1): Holds directors personally liable for unremitted source deductions, but only when due diligence cannot be demonstrated. Section 227.1(3): Establishes a two-year limitation period for CRA to pursue directors after resignation or dissolution. Section 153(1): Requires employers to withhold tax, CPP, and EI contributions, forming the basis for CRA’s claims. Section 220(3.1): Allows CRA to cancel penalties and interest through the Taxpayer Relief Program. Section 165(1): Grants the right to file a Notice of Objection to dispute any personal reassessment.
Excise Tax Act (Canada) Section 323(1): Applies similar personal liability for unremitted GST/HST by corporate officers. Mackisen ensures both payroll and GST/HST issues are handled together for complete defense.
Tax Administration Act (Quebec) Revenu Québec enforces identical director liability provisions for QST, QPP, and payroll obligations. Mackisen coordinates both agencies to stop duplicate enforcement and preserve your rights.

Key Court Decisions

Bédard v. The Queen (2022): Directors who take reasonable steps to ensure compliance are protected from personal liability. Thibault v. The Queen (2022): Accounting delays or financial hardship do not constitute negligence. Buckingham v. The Queen (2011 FCA): Active oversight and delegation to professionals qualify as due diligence. Guindon v. Canada (2015): CRA must prove failure to act reasonably before imposing director liability. These rulings confirm that CRA cannot hold directors liable without clear evidence of negligence or inaction.

Why CRA Targets Directors

CRA’s 2025 collection system automatically tracks corporate debts and identifies associated directors through corporate registry data. Common triggers include unpaid payroll deductions, GST/HST arrears, dissolved corporations, or unfiled returns. CRA assumes negligence — Mackisen proves oversight, professional reliance, and financial constraint.

Mackisen’s Director Liability Defense Strategy

1. File Review: Examine CRA’s claim and confirm whether proper legal notice was issued. 2. Due Diligence Documentation: Collect minutes, emails, and accounting records proving director involvement and oversight. 3. Legal Defense: Argue procedural invalidity, expired limitation periods, or lack of personal responsibility. 4. Objection and Appeal: File a Notice of Objection under Section 165(1) to suspend collection and initiate independent review. 5. Penalty and Interest Relief: File under Section 220(3.1) to remove associated penalties once fairness is demonstrated. Mackisen ensures CRA respects corporate separation and personal protection.

Real Client Experience

A Montreal tech startup founder was assessed $186,000 in director liability for unpaid payroll. Mackisen proved accounting error and CRA cancelled the full claim. A Quebec manufacturing executive was personally targeted for $248,000 in GST debt. Mackisen demonstrated delegation and due diligence, and CRA dropped the liability entirely.

Common Questions

Can CRA make me personally responsible for corporate tax debt? Only if you failed to act with due diligence — Mackisen proves your compliance. Can CRA collect from my personal accounts? Not if we file an objection immediately. Can CRA pursue me after the company is dissolved? Only within two years — Mackisen enforces that legal limit. Can CRA remove penalties for directors? Yes, through the Taxpayer Relief Program once due diligence is shown.

Why Mackisen

At Mackisen CPA Auditors Montreal, we are Canada’s leading defense team for directors facing CRA liability. Our integrated team of accountants and tax lawyers protects business leaders from personal exposure, aggressive enforcement, and reputation damage. We act fast, defend decisively, and negotiate strategically — because leadership should never be punished for integrity. When CRA comes after your name, Mackisen defends your legacy. Call Mackisen CPA Auditors Montreal today for your 2025 Director Liability Defense Consultation. The first meeting is free, and your protection starts immediately.