LONG-ARM OF CRA COLLECTIONS
CRA FOLLOWS HUSBAND'S TAX DEBT TO WIFE
As we have blogged here and here, the CRA has “third-party” transfer powers that allow it to follow a taxpayer’s GST or income tax debts to relatives where it can demonstrate that money or assets have been diverted to those relatives, for less than fair market value.
A better alternative would be dealing with one's tax debts during one's lifetime, and using the CRA’s newly revamped Voluntary Disclosure Program to help settle one’s tax affairs finally and effectively.
The Tax Court of Canada's (“TCC”) recent decision Ballantyne v. The King (2025 TCC 127) underscores the mess that can be created for a spouse or children if tax debts remain unaddressed.
Tagged in:
Ballantyne v. The King
Canada Revenue Agency
CRA Assessment
Taxpayers Debt
Voluntary Disclosure
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