CRA’s policy mentions the following as specific actions directors can take to demonstrate due diligence: “establishing a separate account for withholdings from employees and remittances of source deductions and for remittances of GST/HST, excise duty, and amounts charged under the ATSCA and the SLPECA; calling on financial officers of the corporation to report regularly on the status of the account; and obtaining regular confirmation that withholdings, remittances, or payments have in fact been made during all relevant periods.”
In addition to due diligence, you may be able to reduce or eliminate the underlying assessments, and a prior resignation may mean that the CRA’s window to reassess. Sole directors of companies may face difficulties with the latter as well.
Provided you are still a director, there is no limitation period. Once you cease being a director (typically by resigning), they have two years to assess.
