BUSINESS LAW REPORTS Fourth Series/Quatri`Eme S´Erie Recueil De Jurisprudence En Droit Des Affaires
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BUSINESS LAW REPORTS Fourth Series/Quatri`eme s´erie Recueil de jurisprudence en droit des affaires VOLUME 77 (Cited 77 B.L.R. (4th)) EDITOR-IN-CHIEF/REDACTEUR´ EN CHEF Scott D. Conover, B. COMM., LL.B. Fasken Martineau DuMoulin LLP Toronto, Ontario ASSOCIATE EDITORS/REDACTEURS´ ADJOINTS Murray J. Braithwaite, A.B.(HON.), Robin P. Roddey, B.A.A., LL.B. LL.B., LL.M., PH.D. Fasken Martineau DuMoulin LLP Fasken Martineau DuMoulin LLP Toronto, Ontario Toronto, Ontario Lisa Marcuzzi, B.A., LL.B., M.B.A. Janice J. Javier, B.A.(HON.), LL.B. Fasken Martineau DuMoulin LLP Fasken Martineau DuMoulin LLP Toronto, Ontario Toronto, Ontario CARSWELL EDITORIAL STAFF/REDACTION´ DE CARSWELL Jeffrey D. Mitchell, B.A., M.A. Director, Editorial Production and Manufacturing Lisa Gordon, LL.B., LL.M. Product Development Manager Julia Fischer, B.A.(HON.), LL.B. Sharon Yale, M.A., LL.B. Acting Supervisor, Legal Writing Supervisor, Legal Writing Mike MacInnes, B.A.(HON.), LL.B. 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ISSN 0383-5551 ISBN 978-0-7798-0206-7 Printed in Canada by Thomson Reuters CARSWELL, A DIVISION OF THOMSON REUTERS CANADA LIMITED One Corporate Plaza Customer Relations 2075 Kennedy Road Toronto 1-416-609-3800 Toronto, Ontario Elsewhere in Canada/U.S. 1-800-387-5164 M1T 3V4 Fax 1-416-298-5082 www.carswell.com E-mail www.carswell.com/email BUSINESS LAW REPORTS Fourth Series/Quatri`eme s´erie Recueil de jurisprudence en droit des affaires [Indexed as: Butterfield v. R.] John Sebastian Butterfield, Appellant and Her Majesty the Queen, Respondent Federal Court of Appeal Sharlow, Johanne Trudel, Stratas JJ.A. Heard: December 2, 2010 Judgment: December 2, 2010 Docket: A-377-09, A-378-09, 2010 FCA 330 John Sebastian Butterfield, for himself Carl Januszczak, Laura Zumpano, for Respondent Tax –––– Goods and Services Tax — Administration and enforcement — Directors’ liability — Limitation period –––– B was sole director of printing company and believed that he lost all say in company’s affairs after it was assigned into bankruptcy in 2003 — In 2005, company was struck off register — Within two years, Minister assessed B as director pursuant to Income Tax Act (ITA) and Excise Tax Act (ETA), in relation to company’s $2,752 in unremitted source deductions and $21,403 GST liability — Tax Court judge dismissed B’s appeal of assessment on basis that B did not cease being direc- tor upon company’s assignment into bankruptcy and on basis that Minister brought direc- tor’s liability assessment within two-year period and met all requirements for application of s. 227.1 of ITA and s. 323 of ETA — Tax Court judge held that “director” in s. 1 of Company Act included every person by whatever name designated who performed func- tions of director, that definition of “director” was inclusionary provision, and that B held office as director since he was properly appointed as director and could only cease to be director by limited provisions set out in s. 130 of Company Act — As B admitted that he never resigned, Tax Court judge concluded, B remained director until company was struck in 2005 — B appealed — Appeal dismissed — Tax Court judge neither erred in finding that B last ceased to be director less than two years before date of assessments nor committed any other error warranting appellate intervention — B’s contention that s. 130 definition of “director” was inclusionary, non-exhaustive provision which should be in- terpreted as allowing person to cease being director whenever precluded from performing functions of director, was not accepted — In absence of statutory power by trustee to remove B as director, B could not simultaneously claim that bankruptcy did not result in him ceasing to be director, but that last visit at his office and what he perceived as his constructive dismissal, did — Excise Tax Act, R.S.C.