Johnson (Re)

Johnson (Re)

Master Robertson granted a conditional discharge suspended until November 30, 2021, imposing a monetary condition of $15,000 payable to the estate by July 30, 2023 (no minimum monthly amount), and continuing filing obligations under the Income Tax Act and Excise Tax Act until the payment condition is satisfied. The...

Source-derived case information.

Citation
2021 BCSC 1605
Parties
Bankrupt / Applicant: Martin Robert Johnson; Trustee (appearing on Own Behalf): E. Sands & Associates Inc.; Creditor / Respondent (canada Revenue Agency): Her Majesty the Queen in Right of Canada, as represented by the Minister of National Revenue
Court
Supreme Court of British Columbia
Jurisdiction
Canada
Judgment Date
17 August 2021
Procedural Posture
Bankruptcy and Insolvency / Application for Conditional Discharge
Outcome
Conditional discharge granted
Legal Topics
Conditional Discharge, Tax Driven Bankruptcy, S.172.1 BIA, Surplus Income, Deterrence
Source Language
english
Bankruptcy and Insolvency Tax Law Conditional Discharge Tax Driven Bankruptcy S.172.1 BIA Surplus Income Deterrence

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 15 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Martin Robert Johnson

Bankrupt / Applicant

E. Sands & Associates Inc.

Trustee (appearing on Own Behalf)

Her Majesty the Queen in Right of Canada, as represented by the Minister of National Revenue

Creditor / Respondent (canada Revenue Agency)

Procedural Posture

Bankruptcy and Insolvency / Application for Conditional Discharge

Legal Issues

  1. 1 Whether a conditional discharge should be granted under s.172.1 of the BIA
  2. 2 What monetary conditions, if any, are appropriate for a tax-driven bankruptcy
  3. 3 Assessment of the bankrupt's rehabilitation and ability to pay

Ratio Decidendi

Master Robertson granted a conditional discharge suspended until November 30, 2021, imposing a monetary condition of $15,000 payable to the estate by July 30, 2023 (no minimum monthly amount), and continuing filing obligations under the Income Tax Act and Excise Tax Act until the payment condition is satisfied. The court exercised discretion under s.172.1, found the bankrupt rehabilitated, balanced deterrence and integrity against the bankrupt's limited future capacity, and considered prior amounts already paid into the estate.

Court Disposition

Conditional discharge granted

Orders

  • Discharge suspended until November 30, 2021 with continuation of monthly income and expense statements and filing of required returns under s.172.1(5) BIA
  • Bankrupt to pay $15,000 to the estate by July 30, 2023; payments may be made in partial amounts with no minimum monthly requirement or in a lump sum at any time