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August 13, 2014

Paul Grower publishes paper in Canadian Tax Journal.

Paul Grower, a tax partner with Fillmore Riley LLP, recently published a paper in the Canadian Tax Journal. Tax Collection: The Risk of Less Than Fair Market Value Property Transfers reviews one of CRA’s most powerful collection tools in the federal Income Tax Act and the federal Excise Tax Act.

These provisions extend the collection powers of the CRA beyond the tax debtor, allowing it to potentially pursue any non-arm’s-length recipient who has received property from the tax debtor, by making the recipient jointly and severally liable for the tax debtor’s debt.

The willingness of CRA to utilize this collection power, and the very real risk that taxpayers, and their families, may unwittingly become caught in its grasp, merit a review of these provisions and the recent and relevant case law.

The paper offers guidance on the breadth of and possible limits of the provisions, with a focus on their implications for individuals and for owner-managers of private corporations.

Please click here to read the full paper.