The bankrupt, Christopher Sean Reid, a first-time bankrupt with a substantial tax debt to the Canada Revenue Agency (CRA), sought an unconditional discharge.
The CRA opposed, requesting a conditional discharge based on the bankrupt's failure to keep proper books, non-filing of tax returns, and an alleged ability to pay surplus income.
The court found the bankrupt's testimony regarding his income and financial records lacked credibility and imputed income based on transfers from his father's business to his wife's account.
Balancing the interests of creditors, the bankrupt's rehabilitation, and the integrity of the bankruptcy process, the court determined the bankrupt was not an "honest but unfortunate debtor" and granted a conditional discharge.
