Canada v. Heavyside
A-237-96
Décary J.A.
9/12/96
6 pp.
Application for judicial review of Tax Court of Canada decision respecting tax liabilities of husband and wife under Income Tax Act, s. 160(1) where husband bankrupt, discharged-On June 6, 1989, respondent's husband transferred 50% ownership interest in property to respondent who became sole owner of property, received benefit of $2,759.50-Husband making assignment in bankruptcy in 1993, discharged as bankrupt in 1994-MNR assessing respondent under s. 160 in amount of $4,986.57, reduced to $2,759.50-S. 160 seeking to prevent taxpayer from avoiding tax liability by simply transferring assets to spouse or other person described in section-Allowing Minister to seek payment from taxpayer who is not original taxpayer-Once conditions of s. 160(1) met, transferee personally liable to pay tax determined under said provision-Moment chosen by Minister to assess transferee of no consequence-Liability for tax results from Act, not from assessment-Triggered by transfer herein-Husband discharged from bankruptcy relieved from paying Minister amount due by him under s. 160-Order of discharge not extinguishing debt-Person "jointly bound" with bankrupt not released by discharge of bankrupt under Bankruptcy Act-Discharge under Bankruptcy Act not payment under terms of s. 160(3)-Triggering date that of transfer, not that of assessment-Application allowed-Income Tax Act, S.C. 1970-71-72, c. 63, s. 160(1) (as am. by S.C. 1980-81-82-83, c. 140, s. 107(1)), (2),(3)-Bankruptcy and Insolvency Act, R.S.C., 1985, c. B-3.