December 10th, 2009 by Questions
I have an incorporation that was a holdings company for some real estate investments, it was never really managed properly, it has been incorporated since 2006, currently the company no longer holds any assests as all houses were foreclosed on. The company is riddled with debt and although the company itself maybe made approx 200k over the 3 years the payout for shortfalls and costs were almost double. I have never claimed taxes on the company, I have recieved a letter saying that because my annual returns are not up to date they will strike the company. This is fine with me however what are the tax repricussions seeings how I have never claimed even thou i can show a substancial loss and overall the company was never profitable?
Posted from: Alberta
are not up to date they will strike the company. This is fine with me however what are the tax repricussions seeings how I have never claimed even thou i can show a substancial loss and overall the company was never profitable?
Posted from: Alberta
One Response to “Corporation Bankrupcy”
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December 11, 2009 at 8:54 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
Firstly you need to file your tax returns. If you can show losses then you shouldn’t have to worry much about a tax liability as it should be offset by the losses. Failure to file these returns will result in a notional assessment done by CRA and they will likly arbitrairly assume that income was made, profit existed and tax should be owing.
In terms of a bankruptcy in the corporate entitiy, this is going to depend on the nature of the other debts.
The things I look closely for are A) outstanding payroll remittances; B) GST owing; and c) any personal guarantees. If you have a large amount of any of these things as director you are personally responsible for them so a corporate bankruptcy won’t help.