A bankrupt sought a discharge where the majority of the proven claims consisted of a large personal income tax assessment filed by the Canada Revenue Agency.
The creditor opposed the discharge and argued that the court was required under s. 172.1 of the Bankruptcy and Insolvency Act to impose a significant payment condition because the bankruptcy was tax-driven.
The court noted that the only evidence before it suggested the tax liability may have arisen from corporate activities and that no supporting evidence was presented by the opposing creditor to justify the assessment or the opposition.
Considering the statutory factors under s. 172.1(4), including the circumstances of the debt, efforts to pay, and the bankrupt’s financial prospects, the court concluded that imposing a payment condition would be inappropriate.
The discharge was therefore suspended for one day only, after which the bankrupt would be discharged without conditions.
