Taxing Matters: Ontario Court Declines Distribution Exemption for Monitor

Robyn Gurofsky, Jennifer Caruso and Tiffany Bennett of Fasken summarize a recent case where the Ontario Superior Court approved a CCAA distribution but refused to grant the monitor a broad “distribution exemption” from federal and provincial tax withholding and representative liability provisions, signalling heightened scrutiny of such relief and underscoring the need for clear legal and evidentiary support, and ideally tax authority notice or consent, before seeking to disapply tax statutes in liquidating CCAA proceedings.

Read more.