The Century Services case - getting the Crown's priorities straight

Introduction

The decision of the Supreme Court of Canada last month in Century Services Inc. v. Canada1 is of striking interest to the tax and insolvency bars. The Court considered Crown priorities, in particular, the various “deemed trust” provisions found in section 227 of the Income Tax Act (Canada),2 section 86 of the Employment Insurance Act,3 section 23 of the Canada Pension Plan (the “CPP”)4 and in particular section 222 of the Excise Tax Act (GST Portions).5

Filed under:
Canada, Insolvency & Restructuring, Litigation, Tax, Dentons, Bankruptcy, Debtor, Statutory interpretation, Income tax, Withholding tax, Liquidation, Tax deduction, Unemployment benefits, Secured creditor, Canada Pension Plan, Bankruptcy and Insolvency Act 1985 (Canada), Supreme Court of Canada, Court of Appeal for Ontario
Location:
Canada
Firm:
Dentons
The pension implications of the Wage Earner Protection Program

On July 7, 2008, the Wage Earner Protection Program Act (the "WEPPA") was proclaimed into force, along with complementary amendments to the Bankruptcy and Insolvency Act (the "BIA") and other related statutes. The new program protects a limited amount of the unpaid wages of employees when an employer becomes bankrupt or is placed into receivership, and the amendments to the BIA provide for the priority of some un-remitted pension contributions.

The Wage Earner Protection Program (the "WEPP")

Filed under:
Canada, Employment & Labor, Insolvency & Restructuring, Borden Ladner Gervais LLP, Wage, Bankruptcy, Income tax, Retirement, Remand (court procedure), Preferred stock, Severance package, Bankruptcy and Insolvency Act 1985 (Canada)
Location:
Canada
Firm:
Borden Ladner Gervais LLP