CRA and new rule

November 8th, 2010 by Questions

According to the new rule that if you have tax debts of more than $200,000, and they represent more than 75% of your total debt, you are not eligible for an automatic discharge; a court hearing will be required to end your bankruptcy.
My questions is the $ 200,000 is only the tax portion I did not pay or it is the total account owing to CRA including the penalties and interest please clarify.

Posted from: Ontario


One Response to “CRA and new rule”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

In BIA s. 172.1 of the Bankruptcy and Insolvency Act, the definition of “Personal income tax debt” includes interest, penalties or fines imposed under the Income Tax Act or equivalent provincial legislation, but does not include an amount payable by the individual in their capacity as a director of a corporation.

So yes, it includes interest, penalties and other fines.

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