Tax and Fees

September 10th, 2005 by Questions

Are amounts owed to Revenue Canada eliminated in a bankruptcy? Are the fess
paid to a banruptcy trustee tax deductible?


One Response to “Tax and Fees”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

In most circumstances amounts owed to Revenue Canada are eliminated in a bankruptcy but it would be important to discuss the nature of these debts with your trustee to ensure they are not given unique treatment under the Bankruptcy and Insolvency Act. I would recommend contacting a trustee immediately as a delay on your part can provide Revenue Canada with additional time that can allow them to take measures that cannot be reversed in a bankruptcy proceeding (i.e. if Revenue Canada registers a statutory lien on any real property this then acts like a second mortgage and survives bankruptcy). In terms of trustee fees being tax deductible, unfortunately they are not.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)