Question: | |
Hi:
In 2000 invested over $200,000 of RRSP funds in a Canadian Controlled Private Corporation (CCPC) in an RRSP strip program. At the time all of the compliant paper work was in place with the trustee, a stock brokerage firm holding the instruments in my RRSP account.
Canada Revenue Agency has now issued me a notice that this matter will be referred to criminal investigation. They are assessing me for back taxes of about $117,000. I also owe about $200,000 in unsecured lines of credit and credit card debt.
Due to recent divorce proceedings which are not finalized, I will likely be able to pay my monthly debts soon and may likely need bankruptcy protection.
I believe that if there are criminal fines arising from this C.R.A. action, the fines will survive the bankruptcy. Is this true?
Would the $117,000 in back taxes be released after I am discharged from bankruptcy?
I was not a director nor did I perform fiduciary duties for the CCPC so I am assuming section 178 of the Bankruptcy Act (for debts not released by order of discharge) would be applicable, correct?
-Anonymous
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Answer: | |
Section 178 (d) reads as follows "Any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity; and generally issues that are contentious will be dealt with in a court application. It is therefore impossible to give you a definitive answer. A bankruptcy would certainly discharge the other unsecured debts. Karen Rideout
phone: (403) 296-2973
krideout@alger.ca |
