Corporate veil pierced and property transfer declared unopposable to secure tax debt.
The Minister of National Revenue sought to finalize an interim charging order on a property to satisfy a tax debt owed by Distribution Carflex inc.
The Minister applied to pierce the corporate veil between Carflex and its sole shareholder and director, Yvan Drapeau, who had improperly obtained a $5 million tax refund and used part of it to purchase the property.
Drapeau then transferred the property to another corporation he controlled, 9488-0846 Québec inc.
The Federal Court granted the application, finding the corporate veil should be pierced to prevent fraud.
The Court declared the property transfer unopposable to the Minister as a fraudulent conveyance under the Civil Code of Québec and made the charging order on the property definitive.
