• Ontario Court Rejects Crown Super-Priority for GST Claims in CCAA Proceedings
  • February 27, 2004 | Authors: Chris Bennett; Kathy Martin
  • Law Firm: McMillan LLP - Toronto Office
  • In the recent case of Re Ottawa Senators Hockey Club Corp ("Re Ottawa Senators"), the Ontario Superior Court of Justice (the "Ontario Court") held that, notwithstanding provisions of the Excise Tax Act (the "ETA") which create a deemed trust in favour of the Crown for collected and unremitted GST, Crown claims for such GST will rank as an unsecured claim. Accordingly, such claims will not enjoy super-priority over the debtor company's secured creditors in proceedings commenced under the Companies' Creditors Arrangement Act (the "CCAA").