Romain Viel in Taxnet Pro™ | Supreme Court of Canada Decides Federal Crown’s Deemed Trust Priority for Unremitted GST/HST Doesn’t Survive Bankruptcy in Canada v. Callidus Capital Corporation

On November 14, 2018, the Supreme Court of Canada decided a tax debtor’s bankruptcy retroactively extinguishes the federal Crown’s deemed trust priority under section 222 of the Excise Tax Act over the debtor’s assets –  including proceeds received by creditors. In his article, “Supreme Court of Canada Decides Federal Crown’s Deemed Trust Priority for Unremitted GST/HST Doesn’t Survive Bankruptcy” as published by Thomson Reuters’ Corporate Tax Centre on Taxnet Pro™ on November 27, 2018 (PDF), McInnes Cooper Bankruptcy & Insolvency Lawyer Romain Viel explains how the Court’s decision in Canada v. Callidus Capital Corp. that a tax debtor’s bankruptcy reverses the priority over proceeds that creditors received after enforcing security against tax debtors’ assets is a victory for creditors – but still leaves creditors with  exposure for debtors’ liability to the Crown. If you have a subscription to Taxnet Pro™, you can read the article here. If you don’t have a subscription and want to see the subscription options, please go to https://www.gettaxnetpro.com/.