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  • Apr 2nd, 2017 10:09 pm
[OP]
Newbie
Feb 6, 2014
82 posts
1 upvote
Beaverton, ON

Corporation bankrupt

What happens if a corporation goes bankrupt but still owes Corp taxes and hst?
5 replies
Deal Addict
Aug 19, 2013
2387 posts
966 upvotes
In some situations they can go after the directors of the corporation.
Member
May 29, 2012
404 posts
82 upvotes
Southern Ontario
CRA can go after owners of a corporation if there is any money owing for payroll deductions for sure, possibly HST and corp tax but not sure on those.
can read this article
Deal Addict
Feb 29, 2012
2084 posts
1053 upvotes
Richmond
The article says that the directors may be liable if the bankrupt corporation is unable to pay "deemed trust" amounts to the government. That is, amounts that they have collected on behalf of the government, like HST. Because not being able to pay those amounts that were held in trust would be equivalent to theft from the government. But it doesn't say anything about directors being liable for paying corporate income tax or anything like that.

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