Subsection 121(1)
Cases
Leo Beauchesne Inc. v. The Queen, 77 DTC 5308, [1977] CTC 398 (FCTD)
A discharge order based on a proposal made under Part III of the Bankruptcy Act discharged the taxpayer's liability relating to deductions which it had erroneously taken in prior years in respect of which no reassessment action yet had been taken by the Minister.
Paragraph 173(1)(a)
Cases
In re Katari, 89 DTC 5324 (S.C.O.)
The taxpayer, who made an assignment in bankruptcy primarily as a result of his failure to make quarterly remittances of income tax instalments, failed to establish the onus set out in s. 173(1)(a), and pursuant to s. 172(2) of the Bankruptcy Act, his discharge was made conditional on repaying the amount owing in 80 monthly instalments without interest. Granger J. noted that as a result of the taxpayer's failure to make instalments, he had been able to enjoy a higher standard of living than he would have enjoyed if he had complied with his statutory duty like most Canadians.