Is a debtor who transfers property to a non-arms’ length third party who has transferred property subject to the debtor’s subsequent bankruptcy?
Canada (Federal), Canada
The following excerpt is from Canada v. Callidus Capital Corporation, [2018] 3 FCR 460, 2017 FCA 162 (CanLII):
Further, section 325 of the Excise Tax Act establishes liability for a non-arms’ length third party who has been transferred property. The liability of the third party is not affected by the debtor’s subsequent bankruptcy: Heavyside v. Canada, [1996] F.C.J. No. 1608. Absent language suggesting otherwise, statutes should be read so as to achieve consistency and harmony across like provisions.
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