Canada Revenue Agency: Abuser or Abused Case Law Divided On Role Of CRA In Proposals in Bankruptcy
Article originally published in TLA Journal, May 2006
Excerpt from "Canada Revenue Agency: Abuser or Abused : Case Law Divided On Role Of CRA In Proposals in Bankruptcy":
Two very recent cases from the Bankruptcy Court provide a rare glimpse into starkly different judicial approaches toward Canada Revenue Agency ("CRA"). In Re Proposal of McClory,  CANLII 4761, Registrar Nettie was prepared to infer that CRA had unreasonably exercised voting power to favour itself over other future creditors of the debtor. In Re Proposal of Silbernagel, (Unreported, Ontario Superior Court of Justice, April 26, 2006), the Honourable Mr. Justice Ground characterized CRA as an involuntary creditor representing the people of Canada , which was merely ensuring the rehabilitation of the debtor in seeking the very protection that Registrar Nettie had disallowed.