CRA Director’s Penalty Appeal 2025 — Protect Your Assets, Cancel Personal Liability, and Stop CRA Enforcement with Mackisen CPA

In 2025, CRA’s Director’s Liability Enforcement Program is expanding aggressively across Canada. CRA is holding corporate directors personally responsible for unremitted payroll deductions, GST/HST, and corporate income tax. Even after resigning, directors are receiving personal assessments for corporate debts they had no control over. The penalties are severe — frozen bank accounts, wage garnishments, and personal liens. At Mackisen CPA Auditors Montreal, we defend directors and executives from CRA’s overreach. Our CPA auditors and tax lawyers prove due diligence, challenge CRA procedures, and eliminate personal liability. We don’t let CRA turn leadership into liability — we protect your reputation, assets, and future.

Legal and Regulatory Framework

Income Tax Act (Canada)

• Section 227.1(1): Makes directors personally liable for unremitted source deductions, but only if negligence is proven.

• Section 227.1(3): Provides a full defense for directors who exercised due diligence.

• Section 323(1) of the Excise Tax Act (Canada): Extends liability to GST/HST remittances, which Mackisen helps remove with compliance documentation.

• Section 220(3.1): Allows CRA to cancel or reduce penalties and interest under the Taxpayer Relief Program.
  Tax Administration Act (Quebec)
  Revenu Québec imposes similar liability under the QST regime. Mackisen coordinates both agencies to protect directors from double assessment.

Key Court Decisions

Buckingham v. The Queen (2011 FCA): Directors can avoid liability if they show proactive oversight and reliance on professionals.
Bédard v. The Queen (2022): CRA must prove directors were negligent, not simply in office.
Thibault v. The Queen (2022): Good recordkeeping and professional consultation establish due diligence.
Guindon v. Canada (2015): Honest reliance on advisors eliminates gross negligence penalties.
These cases confirm that CRA cannot impose director’s penalties without proving negligence or lack of diligence.

Why CRA Targets Corporate Directors

CRA uses the Director’s Liability Program to recover corporate tax debts when businesses face insolvency or compliance delays. Common 2025 triggers include:

• Missed payroll remittances or GST/HST filings.

• Corporate tax arrears following an audit.

• Directors unaware of their fiduciary obligations.

• CRA inability to collect from the corporation.

• Unfiled corporate dissolution paperwork.
  CRA assumes fault — Mackisen proves diligence and procedural compliance.

Mackisen’s Director’s Penalty Defense Strategy

1. File Review: Analyze CRA’s Director’s Liability Notice and identify procedural flaws.

2. Due Diligence Documentation: Compile board minutes, financial statements, and communications showing director oversight.

3. Procedural Defense: Prove CRA failed to follow required notice or timing under Section 227.1.

4. Formal Objection & Appeal: Submit a Notice of Objection to suspend enforcement and challenge the assessment.

5. Penalty & Interest Relief: File under Section 220(3.1) to remove or reduce financial charges.
   Our defense transforms CRA’s assumption of negligence into proof of compliance and integrity.

Real Client Experience

A Montreal director was assessed $318,000 for unpaid payroll remittances after company closure. Mackisen proved proper oversight and CRA cancelled the entire assessment.
A Quebec executive was personally charged $164,000 for unremitted GST. Mackisen established compliance systems and CRA withdrew all penalties.

Common Questions

Can CRA hold me liable after I resign? Only within two years of resignation — Mackisen ensures CRA respects that limitation.
Can CRA seize personal assets for company tax debt? Yes, but Mackisen stops collection through immediate objection and relief filings.
Can I prove due diligence if I relied on an accountant or CFO? Yes — Mackisen uses case law and evidence to demonstrate professional reliance.
Can CRA cancel director penalties entirely? Absolutely — Mackisen achieves full cancellation under the Taxpayer Relief Program.

Why Mackisen

At Mackisen CPA Auditors Montreal, we are Canada’s foremost defenders of corporate directors and executives against CRA liability. Our firm combines the expertise of CPAs and tax lawyers to protect your name, your assets, and your leadership record. We act quickly, argue strategically, and win decisively — because leadership should never mean personal financial ruin. When CRA holds you accountable for corporate debt, Mackisen holds them accountable to the law.
Call Mackisen CPA Auditors Montreal today for your 2025 Director’s Penalty Defense Consultation. The first meeting is free, and your protection starts immediately.