Corporate Tax after closure of Company
October 8th, 2010 by Questions
I have a limited company, and it still owes revenue canada corporate tax, I know that the gst and personal tax I am responsible for through my consumer proposal, but do I have to bankrupt the company or can I close it, and not owe the corporate tax anymore. This is a one man company with no assets.. but two directors husband and wife.. are we going to be harrassed for these personally? or does this debt get written off? Are there conditions once I close the company?
Posted from: Alberta
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October 12, 2010 at 7:28 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
There is no director liability for personal tax. Meaning, if you close the company it does not survive onto you personally. The only debts that do are GST, payroll remittances and debts that are personally guaranteed. So in this case, if you close the company no one can force collection from you personally.
The tricky part is that CRA can still contact you in your capacity as director to demand payment, but not payment from you personally.