ARTICLE · 31 MARCH 2010

Focus On Insolvency/Restructuring Group - February, 2010

Dentons Canada LLP

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In the recent decision of Ministre du Revenue national c. Caisse populaire du bon Counseil, 2009 SCC 29 ("Caisse populaire"), the Supreme Court of Canada (the "SCC") considered whether a lender's contractual rights in respect of its customer's term deposit account may be defeated by a deemed statutory trust in favour of the Crown.

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Contents

CRA Deemed Trust Trumps Contractual Right To Set Off
Reorganization Proceedings Continued Notwithstanding Allegations Of Conflict

Court Restricts Access To Debtor's Data Room

CRA Deemed Trust Trumps Contractual Right To Set Off
By David Mann, David Legeyt

In the recent decision of Ministre du Revenue national c. Caisse populaire du bon Counseil, 2009 SCC 29 ("Caisse populaire"), the Supreme Court of Canada (the "SCC") considered whether a lender's contractual rights in respect of its customer's term deposit account may be defeated by a deemed statutory trust in favour of the Crown.

Any property of a taxpayer that is subject to a "security interest" within the meaning of the term in s. 224(1.3) of the Income Tax Act, R.S.C. 1985, c. 1 (5th Suppl.) ("ITA"), is, to the extent of any unremitted source deductions by the taxpayer, deemed to be held in trust for the Crown pursuant to the operation of s. 227(4.1) ITA and s. 86(2.1) of the Empl

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