More than ‘checking the box’ needed for outside director to avoid director’s liability

By Carolyn Inglis ( August 4, 2023, 12:33 PM EDT) -- Where a corporation fails to deduct or withhold an amount as required by the Income Tax Act (the Act), s. 227.1 of the Act provides that the directors of the corporation at the time of the failure are jointly and severally liable, together with the corporation, to pay that amount plus interest and penalties. The liability of a director pursuant to this provision is subject to limited defences. A director is not liable if the person resigned as a director more than two years prior to the assessment....