Waiting till the penny drops, are we?

 

"I agree, Snowden is a responsible company and only would take work if they knew they would get paid. For them to spend months of time on BGM is a HUGE vote of confidence for FC and BGM management."

Provide concrete proof that Snowdon has been spending months of tine at BGM.The company's news releases and financials don't say that Snowden is working. The releases say that Snowden will do things once other consultants complete their portion, and the financials and loan documentation show a huge negative cash position, overdue CRA reassessments (recognized and unrecognized...and overdue and unpaid employee payrioll deductions.

 

As Frank fiddled getting his security in place (and ever wonder why MSQ got paid that $5-million for the residual on the property and why the debenture wasn't rolled forward for another year, when it was tap city at BGM?), you can be sure that the CRA is looking with jaundiced eyes at the unpaid, mostly unrecognized $4.3 million flow-through reassessments for 2004 to 2006...and then BGM tells shareholders that employee's current payroll withholdings are unpaid and past due.

 

Here's what the CRA says about that:

Penalties, interest, and other consequences

If you do not fulfill your obligations or comply with our payroll requirements, you may be assessed a penalty, interest, or incur other consequences.

If you fail to comply with the deducting, remitting, and reporting requirements, you may be prosecuted. You could be fined from $1,000 up to $25,000, or you could be fined and imprisoned for a term of up to 12 months.

If you disagree with an assessment or ruling, you may appeal it. You may also request a cancellation or a waiver of the penalties and interest, if you were prevented from fulfilling your obligations due to extraordinary circumstances.

 

Late remitting/Failure to remit

We can assess a penalty on the amount you failed to remit when:

  • you deduct the amounts, but do not remit them; or
  • we receive the amounts you deducted after the due date.

If the remittance due date is a Saturday, Sunday, or public holiday, your remittance is due on the next business day.

The penalty for remitting late is:

  • 3% if the amount is one to three days late;
  • 5% if it is four or five days late;
  • 7% if it is six or seven days late; and
  • 10% if it is more than seven days late or if no amount is remitted.

Example
A remittance that was due on January 15 of the current year (for deductions made in December of the previous year) is considered late when paid after January 15.

Generally, we only apply this penalty to the part of the amount you failed to remit that is more than $500. However, in certain circumstances, we may apply the penalty to the total amount.

If you are subject to this penalty more than once in a calendar year, we may assess a 20% penalty on the second or later failures if they were made knowingly or under circumstances of gross negligence

Failure to pay amounts deemed to be held in trust

As an employer, you are deemed to hold in trust, amounts that are deducted from employees and other individuals for:

  • Income tax,
  • Canada Pension Plan (CPP) contributions, and
  • Employment Insurance (EI) premiums.

If you do not pay the balance owing, we may, at the time we issue a notice of assessment, garnishee your sources of funds (including trade receivables, bank deposits, loans, advances, and other income) or begin to seize and sell assets.

Any assets we seize will be sold by sheriff's auction, unless the account is promptly paid in full, including any costs resulting from this action.

For more information, see "Trust Funds" under information circular IC98-1, Collections Policies.

 

Director's liability

If a corporation (including for-profit or non-profit corporations) fails to deduct, remit, or pay amounts held in trust for the Receiver General, the directors of the corporation at the time of the failure may be held personally liable along with the corporation to pay the amount due including penalties and interest.