I work for a company that used to have a company by another name,. That company closed over two years ago. However I received an invoice from teh Gov't of Ontario regarding taxes in 2004 with interest. Do I have to pay this invoice?
2006-10-26 04:40:59 · 10 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Canada
It depends on what type of tax the Ontario Government is charging the company for. If the charge is for taxes withheld from employees or collected from customers (sales tax) and not remitted, then the directors of the company (whether or not the company currently exists) may be personnally liable for the tax. The reasoning behind this is that these types of taxes are considered to be trust funds in favour of the Government and therefore do not consitute an asset of the company that can be used to settle other company debts. There have been many court cases of late in Canada regarding the due diligence (or lack thereof ) of company directors where companies under financial stress have failed to remit taxes to various levels of government that have either been withheld from employees or collected from customers.
Canadian companies that have ceased to operate require a tax clearance certificate from all relavent levels of government before they are allowed to surrender their charter and disolve. As long as the company exists, (albeit dormant) the shareholders and directors remain on the hook for its debts.
Needless to say there is a practical issue to be considered here that is related to the materiality of the amount involved. I suspect that the level of effort to collect unpaid amounts on the part of the government seeking the funds would be a function of the cost of pursuing the debtor. If this pursuit extends to a juristication outside of Canada the amount involved would have to be substantial before any substantial legal effort to collect would be embarked upon.
I hope this is helpful.
Tim H
2006-10-26 10:12:21 · answer #1 · answered by TIM H 2 · 0⤊ 0⤋
When a Ltd. company closes they must report the closure to revenue canada in the year that it closed. The company that closed probably reported to the gov. that you received income from them in 2004. If you received the income you have to pay the bill. If you didn't receive the money then you will need to open up a dispute.
If you were the owner of the company and did not report any income, you can be assessed taxable income based on payments made to your company and then reported to the taxman.
2006-10-26 10:49:57 · answer #2 · answered by Share 2 · 0⤊ 0⤋
i take advantage of to artwork for a private loan corporation who offered some loans from yet another corporation. even regardless of the shown fact that there grew to become into no contract with the folk who had taken out the loans, they have been nevertheless under an felony accountability to pay the corporation i worked for. logically you're accountable on the grounds that in any different case there could be no incentive for yet another corporation to purchase the own loan interior the 1st place.
2016-12-16 14:44:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes, you do. Just because a company is no longer in business doesn't mean that they still don't have debt they have to pay. Shutting a business down is no excuse for not paying debt, unless they filed for commerical bankruptcy.
2006-10-27 02:31:01 · answer #4 · answered by Imani 5 · 0⤊ 0⤋
If the cpmpany went bankrupt then the answer is no.
Canadian baknruptcy laws eradicate all debt including PST, GST, witholding tax and income tax.
In the USA that is not the case.
2006-10-26 04:45:18 · answer #5 · answered by Jack 6 · 0⤊ 0⤋
As long as the company reforms as a seperate and different entity they are not likey to owe the money.
2006-10-26 04:55:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Get your boss to approve/disapprove payment. S/he'll need to take the matter up with Gov.
I hope you are not paying your employer's bills personally.
2006-10-26 13:59:00 · answer #7 · answered by Smilin' Fred 4 · 0⤊ 0⤋
You give that to your lawyer. If the debt was not discharged by something like a bankruptcy, it's probable.
2006-10-26 04:49:00 · answer #8 · answered by loryntoo 7 · 0⤊ 0⤋
yes..that true in u. s. i took over my son's business and he owed taxes on His business and when i took over they came and picked up my truck and my tractor and held them for ransom til i paid the debt that was not mine. good luck
2006-10-28 10:52:16 · answer #9 · answered by zenasrager 3 · 0⤊ 0⤋
Of course. Even if you die, your children will be owing money. So pay early. Pay now.
2006-10-28 03:23:55 · answer #10 · answered by Borat2® 4 · 0⤊ 0⤋