Overdue taxes
Overdue taxes are tax amounts not paid by their due date. The tax authority, such as the Canada Revenue Agency or the BC Ministry of Finance, charges interest and may impose penalties, and can collect by garnishing accounts, registering liens or taking other enforcement steps.
How BC law treats it
Directors can be personally liable for a corporation's unremitted payroll source deductions and GST/HST under the Income Tax Act, s. 227.1 and the Excise Tax Act, s. 323, subject to a due diligence defence.
What it means for your business
For an owner-managed company, unpaid payroll remittances and GST are a personal risk for the directors, not just a company debt.
Risks and common mistakes
Using payroll deductions or collected GST to cover cash flow shortfalls is one of the most common routes to personal director liability.
For the full explanation, see our entry on Director liability.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
