The appellant (240 Ontario) had a real estate purchase and sale business. It received a Requirement to Pay (the Requirement) issued pursuant to s. 224(1) respecting IB who, in addition to being a tax debtor, was its sole shareholder and director. IB, through his control of the bank account of 240 Ontario, withdrew funds from that account in order to repay credit card balances that he had run up on his wife’s credit card. In finding that such withdrawals gave rise to liability of 240 Ontario under s. 224(4), Russell J stated (at paras. 31-32):
Jurisprudence has established that the subsection 224(1) language
“liable to make a payment”applies where there is responsibility at law to make a payment. The provision is not restricted to debtor-creditor relationships. …Here, I find that 240 Ontario did have responsibility at law to make payments to IB from available funds, such responsibility arising from IB’s ownership of and authority over 240 Ontario.