Want to see if anyone experience something like this. A new business, did no filing since it’s in operation, and now is closing its door. I know CRA sometimes contact the rep, but in situation like this, is CRA going to contact us the rep to catch up the filing and will there be liability issue?
In what year did they start operation? In what year did they close the doors? Is it a sole proprietor, partnership or corporation? What is your position with the business?
2021 first year operating incorporated, I was contracted to do their books and tax filing. Basically stopped all filing after the first year. They can’t pay . Last I checked, GST, payroll source, corporate tax, all behind.
In a situation like that, when the customer won’t respond to CRA, they may contact you. When that happens to me, I just tell them that I don’t have anything to do with them. It would probably be a good time to terminate your Rep a Client with them.
If your phone number is on file as the “primary contact” for that client, CRA may eventually phone you, expecting that you are an employee or director of the company who has authority to make decisions and give them an answer to what they will likely ask, “When will these returns be filed?” You can truthfully say you don’t know, and recommend they contact the shareholder/director. You could also tell them to remove you as the primary contact.
Perhaps, but it’s not YOUR responsibility. Any tax owing is always the responsibility of the client, or shareholder/director of the corp. Similar to the above, if CRA has you on file as the primary contact, they may ask you, “Can you provide a date when the amount owing will be paid?” Again, you can say you don’t know, and advise CRA to contact the shareholder/director. CRA can’t come after you for the client’s tax liabilities.