• Pre-Bankruptcy Payment to Secured Creditor Escapes Statutory Deemed Trust
  • January 20, 2016 | Authors: Ian Aversa; Jeremy Nemers
  • Law Firm: Aird & Berlis LLP - Toronto Office
  • Secured creditors should take note of Callidus,1 wherein the Federal Court (the “Court”) held that the bankruptcy of a tax debtor rendered a statutory deemed trust under section 222 of the Excise Tax Act (the “ETA”) ineffective as against a secured creditor who, prior to the bankruptcy, received proceeds from the tax debtor’s assets.