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Income during bankruptcy

Are taxable benefits, other than salary/money, included in the income to be reported during bankruptcy in Ontario? For example, if the employer buys a gift of some kind or pays for something on behalf of the bankrupt employee, does that need to be reported as income?

Posted from: Ontario

One Response to “Income during bankruptcy”

A licensed trustee said...

If you receive a taxable benefit from your employer the value of the benefit should be reflected in your pay, or at the very least in the taxes you are paying. If you have recived a gift or some other windfall that isn’t being reflected on your taxes then you are required to disclose that fact to your trustee.

Income reporting is based on the honour system – the assumption is you’ll report everything fairly because you want relief from your debts (and even if you have to pay more into your bankruptcy it will alwasy be significantly less money than you owed to your creditors when you filed).