Quebec Court of Appeal rules on debt forgiveness regarding a proposal under Bankruptcy and Insolvency Act: The case of Sail Plein Air

Alex Boisvert and Samuel Perron of Norton Rose Fulbright examine the Quebec Court of Appeal’s recently ruling holding that income tax liabilities arising from debt forgiveness following a proposal under the Bankruptcy and Insolvency Act did not constitute provable claims under section 121, as the tax debt had not arisen and could not be monetarily valued at the time of the notice of intention, leaving the revenue authorities free to assess and collect the resulting taxes post-proposal.

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