Précis: The taxpayer’s company, Strong Forming Inc., ran into difficulties as a subcontractor on a subway station project in Toronto. Money was short and it failed to remit HST as the taxpayer used available funds in an attempt to keep the company afloat. The taxpayer was assessed as a director of Strong Forming for the unpaid HST. He appealed unsuccessfully to the Tax Court and, subsequently, to the Federal Court of Appeal. The Court of Appeal agreed with the Tax Court that the taxpayer had not made out a due diligence defence and dismissed the appeal. The parties were given two weeks to attempt to agree upon costs.
Ahmar v. R. – FCA: taxpayer failed to establish defence of due diligence before Tax Court – appeal dismissed by Federal Court of AppealPlus >