Unpaid payroll deductions: Federal Court Of Appeal affirms bona fide purchaser defence for unsecured creditors

David Rotfleisch of Rotfleisch & Samulovitch summarizes the recent Toronto-Dominion Bank v. Canada, 2026 FCA 25 decision, which confirms innocent unsecured creditors can rely on the bona fide purchaser for value defence to retain payments received without notice of unremitted payroll deductions, limiting the Crown’s ability to recover under the Income Tax Act deemed trust regime.

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