INCOME TAX |
Corporations |
Cameron v. Canada
A-763-99
2001 FCA 208, Linden J.A.
19/6/01
6 pp.
Appeal from Tax Court of Canada decision appellant, as director of corporation, liable for failure of corporation to make tax remittances during tenure in office as required by Income Tax Act, s. 227.1(1)--Tax Court Judge not correctly applying jurisprudence of Federal Court--Appellant only required to use reasonable care to prevent defalcation--Appellant complied with legal obligation under Act, s. 227.1(3), that is, objective-subjective standard to act as reasonably prudent person would have in circumstances of case--Appellant not signing officer, had only limited influence on management--More outside director than inside one--Appellant not passive--Did as much as could reasonably be expected to do in order to protect interests of Revenue Canada--Appeal allowed--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, s. 227.1 (as enacted by S.C. 1994, c. 7, Sch. V, s. 90).