INCOME TAX |
Penalties |
Canada v. Roll
A-679-99
Sharlow J.A.
8/12/00
2 pp.
Appeal from Tax Court's judgment ((1999), 2000 DTC 1454) holding respondent liable for penalties imposed under Income Tax Act for failing to withhold source deductions from salaries, wages paid to employees of Sea Hornet Marine Industries (Canada) Inc., but not liable for source deductions themselves--Once determined respondent bare trustee of employer's funds, acting only on directions of principals of Sea Hornet, with no independent authority over disposition of funds, and decision to pay net salaries of employees that of principals, Tax Court should have concluded respondent not within scope of Act, ss. 153(1), (1.3) (before June 20, 1996), 227(5) (after that date)--No basis for finding respondent liable for source deductions, related penalties--Appeal dismissed, cross-appeal against assessment of penalties allowed--Income Tax Act, R.S.C., 1985 (5th Supp.), c. 1, ss. 153(1), (1.3) (rep. by S.C. 1996, c. 21, s. 40), 227(5) (as enacted idem, s. 57).