In Hall v. R. 2015 TCC 240, the taxpayers were husband and wife who acted as directors of a company in the alarm system business. In late 1990s, the company incurred large expenses and started to experience financial difficulties. In an attempt to save the business, the taxpayers intentionally diverted the company’s source deductions to pay off its creditors. The taxpayers were assessed as directors under section 227.1 of the Income Tax Act (Canada) for the company’s failure to remit source deductions in the 2004 and 2005 taxation years. The Tax Court found that the taxpayers could not avail themselves to a due diligence defense when they are the very persons who made the decision to not make remittance to the government.