In the recent case of Canada v. Canada North Group Inc., a 5-4 majority of the Supreme Court of Canada confirmed that supervising courts under the Companies Creditors' Arrangement Act (the "CCAA") have the discretion to grant restructuring charges (“Priming Charges”) priority over statutory deemed trusts (“Deemed Trusts”) in favour of the Crown.
On September 26, 2013 the Supreme Court released its decision in the Envision case. The case deals with the amalgamation of two credit unions, but has broader implications for the tax treatment of amalgamations in Canada, and will be of interest to Canadian corporations contemplating a merger in the future.
In 2001, two BC credit unions amalgamated to form Envision. The ...
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