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- Title
TAX COLLECTION: THE RISK OF LESS THAN FAIR MARKET VALUE PROPERTY TRANSFERS.
- Authors
Grower, Paul K.
- Abstract
This article reviews recent and pertinent case law in respect of one of the more powerful collection tools granted to the Canada Revenue Agency (CRA) under subsection 160(1) of the federal Income Tax Act and subsection 325(1) of the federal Excise Tax Act. These provisions extend the collection powers of the CRA beyond the tax debtor, allowing it to potentially pursue any non-arm's-length transferee who has received property from the tax debtor, by making the transferee jointly and severally liable for the tax debtor's debt. The willingness of the CRA to utilize this power, and the very real risk that taxpayers may unwittingly become caught in its grasp, merit a review of these provisions and the recent and relevant case law. The article provides guidance on the breadth and possible limits of the provisions, with a focus on their implications for individuals and for owner-managers of private corporations.
- Subjects
CANADA; CANADA Revenue Agency; INCOME tax laws; EXCISE tax laws; EXCISE tax; TAX collection; TAX assessment; FAIR value
- Publication
Canadian Tax Journal / Revue Fiscale Canadienne, 2014, Vol 62, Issue 2, p501
- ISSN
0008-5111
- Publication type
Article