Assessments - Till Death Do Us Part?

As we have previously written here and here, a taxpayer's debts can be imposed on their spouse or children through an assessment under section 160 of the Income Tax Act ("ITA"). The Federal Court of Appeal has now drawn a line in the sand limiting the reach of such assessments with respect to the spouse of a tax debtor.

In Enns v. The King, 2025 FCA 14, the Court held that a survivor ceases to be the spouse of a deceased taxpayer for the purposes of section 160 of the ITA. While the ruling is a win for survivors, it leaves open the question of how far the CRA's assessment powers under section 160 may extend.

Enns v. The King – Background

Marlene Enns' deceased husband, Peter Enns, had named her the sole beneficiary of his Registered Retirement Savings Plan ("RRSP"). At the time Peter passed away in 2013, the fair market value of the RRSP was $102,789.52. However, Peter also had an outstanding debt under the ITA greater than the value of the RRSP, which