With the collaboration of Philip Hazeltine
In recent years, many trusts have been created for tax planning
purposes. A trust is a patrimony created by an individual who
donates property (the settlor). When a trust is constituted, one or
several trustees are appointed to administer the affairs of the
trust and hold its assets. Quite often, a professional will agree
to act as a trustee of a trust created for their client. The
involvement of this professional trustee in the day-to-day business
of the trust is sometimes limited, which can have serious
consequences for the professional trustee.
In a recent criminal case, Sous-ministre du revenu du
Québec c. Roy Gordon Harris, Mr. Harris was
charged with at least 18 counts of fraud by the sous-ministre du
revenu du Québec, under the Tax Administration Act
("TAA"), for having willfully fail to
file the returns of several trusts. Mr. Harris acted as the trustee
of these various trusts (the "Harris
Trustee") and it is in
