Recent teachings of the Supreme Court of Canada court in Canada v Canada North Group Inc., 2021 SCC 30 [Canada North] had confirmed that the Companies' Creditors Arrangement Act ('CCAA') courts could grant super-priority charges (e.g. interim financing, administration charge, or directors' and officers' charges) ranking in priority to s. 227(4.1) Income Tax Act ('ITA') deemed trusts in favor of the Crown.
Until now, however, whether this could occur under the Bankruptcy and Insolvency Act ('BIA') was still undetermined but has been confirmed in the decision of Attorney General of Canada c. Richter Advisory Group Inc., 2023 QCCA 1295.
The Superior Court has jurisdiction to grant super priority charges ahead of ITA deemed trusts
The court relied heavily on the...
