Toronto, ON – The Tax Court of Canada has dismissed appeals by former brewery director Kurtis Astle, confirming his personal liability for more than $46,000 in unremitted federal source deductions, employment insurance premiums, and Canada Pension Plan contributions. Justice Susan Wong issued the decision in the case of Astle v. The King, 2025 TCC 105 (CanLII) on August 1, 2025, following a hearing in Toronto on April 15, 2024.
Astle was a shareholder and director of Brew Street Craft and Kitchen Ltd., a British Columbia craft brewery and restaurant incorporated in 2014. He had been introduced to the venture by David James, a longtime acquaintance who operated a successful pub. Encouraged by James and his business partners, Astle invested $50,000 for a 10 percent share and signed a declaration consenting to act as a director. Although he initially intended to be only a shareholder, he became more involved after allegations of theft led to the departure of two other partners in 2016.
By 2017, the company was facing increasing financial difficulties, including unremitted provincial sales tax and goods and services tax. Minutes from an October 2017 directors’ meeting recorded that James’s new bar owed Brew Street $180,000, and that there were plans to address unpaid taxes. Around the same time, Brew Street’s account with payroll provider Ceridian was locked for non-payment, but Astle testified he was unaware of any payroll issues and relied on James and the company’s controller to handle remittances.
In November 2017, Astle told James via text message that he was “done with it all” and that the business should be sold and taxes paid. However, he did not submit a written resignation until June 26, 2018. Under British Columbia’s Business Corporations Act, a resignation takes effect when provided in writing to the company or its lawyer, and Justice Wong found that June 26, 2018 was the effective date. This placed the Minister of National Revenue’s assessments, issued on December 11, 2019, within the two-year limitation period for director’s liability.
The Canada Revenue Agency had assessed Astle for unremitted amounts including $5,362.34 in federal income tax for 2017, $14,163.23 in federal income tax for the first five months of 2018, $10,124.99 in employment insurance premiums for the same 2018 period, and $16,628.40 in Canada Pension Plan contributions. Provincial income tax amounts were also assessed but fell outside the Tax Court’s jurisdiction.
Astle argued that he had acted with due diligence, but the Court found otherwise. Justice Wong held that the due diligence defence requires directors to take proactive steps to prevent a failure to remit, not simply to react to financial problems or make general inquiries. While Astle had questioned whether employees were being paid and sought financial information, the Court found no evidence that he specifically turned his mind to ensuring source deductions were being remitted.
Concluding that Astle did not meet the statutory standard of care, diligence, and skill expected of a reasonable prudent person in comparable circumstances, Justice Wong dismissed all three appeals. Costs of $1,185 were awarded to the respondent, representing one set of costs under the informal procedure rules.
