Dr. Edward Seale

The bankrupt, a 42-year-old second-time bankrupt, applied for a discharge.

The Canada Revenue Agency opposed the discharge on the grounds that it was a tax-driven bankruptcy, with the bankrupt owing over $660,000 in personal income taxes.

The court found that the bankrupt failed to cooperate with a CRA audit, transferred his business to his sister to avoid paying taxes, and artificially lowered his income to avoid surplus income payments.

The court ordered a conditional discharge requiring the payment of $150,000 and suspended the discharge for 18 months.