On October 30, 2009, the Supreme Court of Canada released its long-anticipated decision in Quebec (Revenue) v. Caisse populaire Desjardins de Montmagny. At issue in this case (and two companion cases) was the legal characterization of Crown rights with respect to collected but unremitted GST and Quebec sales tax (QST) in the hands of a trustee in bankruptcy. The Supreme Court confirmed that the Crown is an ordinary unsecured creditor with respect to such amounts, subject to the rights of prior ranking security holders.
Summary of Facts
Filed under:
Canada, Insolvency & Restructuring, Litigation, Tax, Norton Rose Fulbright, Bankruptcy, Accounts receivable, Excise, Tax deduction, Secured creditor, Goods and services tax (Canada), Unsecured creditor, Bankruptcy and Insolvency Act 1985 (Canada), Supreme Court of the United States, Supreme Court of Canada, Quebec Court of Appeal
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