Owning a corporation and revenue canada
- Thread starter pilen13
- Start date
It is a concept that protects the people who might normally be on the board of directors.What is a advisory board and how does it protect your liabilities.
Please explain
They are advisers to the owner/director without having the liability of being listed as directors of the corporation.
Is short, they go to the meetings but can't vote.
Is this $30k you're talking about a credit line? Or is the account actually $30k in the black? If the latter, you should have no problem getting credit to pay off RC assuming you aren't swimming in liabilities. In the worst of 2009 the company I work for was close to flatlining. It wasn't that we had experienced crippling losses (although we were hurting), it was that we were having trouble with cash flow. The boss actually loaned the business $35k to keep the business running. Gutzy move, but it paid off considering this year is going to be our best year ever. However, he didn't wait until we were unable to pay payroll and HST accounts or even A/P, although that would be the first thing I'd try to stretch.
Let me just say, without malicious intent, that you had a responsibility as the owner to make these payments or pursue steps to ensure your liabilities are fulfilled. You've missed deadlines and there are consequences for that. Although you still have options, you would have had much more had you not let it get so bad to begin with. Perhaps you should have considered bankruptcy? Maybe you should have looked for an alternative credit line? Maybe you should have looked at the sale of under-used assets, or cost savings? Maybe you looked into all of that and we just aren't aware.
RC is just trying to collect what is rightfully theres. You can't expect them to throw you a bone, although they still might. Does what you owe exceed $30k? How long overdue are your payments? All this is relevant information that you didn't give in your original post.
Let me just say, without malicious intent, that you had a responsibility as the owner to make these payments or pursue steps to ensure your liabilities are fulfilled. You've missed deadlines and there are consequences for that. Although you still have options, you would have had much more had you not let it get so bad to begin with. Perhaps you should have considered bankruptcy? Maybe you should have looked for an alternative credit line? Maybe you should have looked at the sale of under-used assets, or cost savings? Maybe you looked into all of that and we just aren't aware.
RC is just trying to collect what is rightfully theres. You can't expect them to throw you a bone, although they still might. Does what you owe exceed $30k? How long overdue are your payments? All this is relevant information that you didn't give in your original post.
Agreed...It’s tough to run your own buss but you have to play by the rules or shit will hit the fan...eventually. We all cheat on taxes "charge cash less HST" "pay cash less hst" theses are hard for the gov to follow but the obvious needs to be paid...best of luck!!! And don’t ever stop using cash all this debit and visa leaves an easy paper trail soon they will have total control!!!
You really should seek the advice of a lawyer. having said that the ability of CRA to look through the corporations is dependent on a number of things. firstly if the outstanding indebtedness arises from unpaid GST/HST/PST and certain statutory trusts for EI/CPP and the like then CRA cannot pierce the corporate veil. This is particularly true if the outstanding indebtedness is simply corporations tax. However if the corporation did have the ability to pay the tax and money left the corporation the CRA can is certain circumstances trace the money. in addition if you as a director or officer of the corporation are personally liable and if you have transferred assets or paid other creditors the the may be a fraudulent conveyance or a fraudulent preference either of which may give CRA the right to follow the money by setting aside the transactions.
Seek proper advice.
Seek proper advice.
not necessarily- as a director of the corporation he may have personal liabilityThey can't go after your house unless the house is bought within your corporation. No personal assets can be touched. Being incorporated protects you from that
National bank? BMO ? All banks will do a minor credit checkHow, i went to scotia. They asked where im banking and that they need to contact them to make sure everything is ok.
Thats when i bolted.
Any bank recommendations excl rbc, td
when they open a new account but that does not mean they will deny you an account.
Also keep in mind if you need to cash some cheques in the meantime Money Mart
can help you.
This is why it was important to act proactively. All major banks are going to look into your situation before granting you a credit line. However, if your business looks profitable and you've just come up short on cash, they still might give you a lifeline. They may or may not make an inquiry at your bank that might reveal your frozen account. Bolting probably made you look bad.How, i went to scotia. They asked where im banking and that they need to contact them to make sure everything is ok.
Thats when i bolted.
Any bank recommendations excl rbc, td
Not sure what you're answering here. Are you saying your business still owes payroll and HST for 2010 and the total amounts to $100k!? How many employees does your corporation have?Lets say $100k for 2010 & 2011.
Ok,
I'll be the asshole.
In future, pay your taxes and remit those taxes you collect on the government's behalf to the government.
Sorry, but it needed to be said.
I'll be the asshole.
In future, pay your taxes and remit those taxes you collect on the government's behalf to the government.
Sorry, but it needed to be said.
Actually, ione thing is not to pay your taxes. CRA will usually work something out in that case. But when you do not remit the taxes, that you have collected on the government's behalf, that is quite a different matter, and you should expect no mercy.Ok,
I'll be the asshole.
In future, pay your taxes and remit those taxes you collect on the government's behalf to the government.
Sorry, but it needed to be said.
Do you feel there should be no penalty for your failure to remit on time then?I agree however not that i have to pay interested compounded on a daily basis
Interesting. I can understand why you're doing that. Atleast it'll be a temporary fix. I hope your company generates a little more cash flow in the near future.Yes
12 employees
Not asking for a credit line just an account
12 employees, eh? Sales around $2 million a year? Assuming your problems started around the same time as the HST was brought in, that would mean to accumulate $100k of debt to the CRA you must have flaked out on about 20% of your payroll and HST remittance. I would say more, but I have no idea what RC charges for interest on overdue accounts.
As for them charging you compounded interest, keep in mind that money devaluates over time (usually). Meaning, if you pay them back 2 years after you should have, it's worth less than it would have been had you paid them on time. Ever heard the saying "I'd rather have a dollar today, than a dollar tomorrow"? They're just preventing themselves from being screwed over.
