Personal liability for corporate taxes
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If you open an incorporated business that flops and you don’t owe anything to any other companies or the bank but owe taxes (nor are there any assets), can you just claim bankruptcy for the incorporated business or can they come after the owner personally for business taxes outstanding? and will that affect the business owners credit??
1 Answer
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What do you mean by “business taxes”? Do you mean:
- corporate income tax?
- unremitted payroll tax and employee source deductions?
- GST collected but not remitted?
Assuming the business owners is also a director of the corporation:
- he is not personally liable for item 1
- he is however personally liable for items 2 and 3
To my knowledge, there will be no effect on the business owner’s personal credit.
Your Answer
1 Answer
0
What do you mean by “business taxes”? Do you mean:
- corporate income tax?
- unremitted payroll tax and employee source deductions?
- GST collected but not remitted?
Assuming the business owners is also a director of the corporation:
- he is not personally liable for item 1
- he is however personally liable for items 2 and 3
To my knowledge, there will be no effect on the business owner’s personal credit.