Supreme Court of Canada rules that the CRA has no claim on the GST component of a bankrupt’s accounts receivable

The Supreme Court of Canada ruled that bankruptcy trustees, receivers and secured creditors can continue to collect the full amount of accounts receivable of a bankrupt supplier, including the Goods and Services Tax (GST) component, even if an amount remains owing by the supplier to the Canada Revenue Agency (CRA).

Filed under:
Canada, Insolvency & Restructuring, Litigation, Tax, Dentons, Bankruptcy, Debtor, Unsecured debt, Accounts receivable, Debt, Secured creditor, Goods and services tax (Canada), Goods and Services Tax (New Zealand), Canada Revenue Agency, Supreme Court of Canada
Authors:
Roger P. Simard
Location:
Canada
Firm:
Dentons