Toronto-Dominion Bank v. Her Majesty the Queen (January 12, 2012)
This appeal involves a dispute over $12,014 that a company owed to the federal government in previously collected GST.
The dispute dates back to 2007, when Revenu Québec sent a requirement to pay to TD Bank, which had $8,868 in an account belonging to the indebted company. TD Bank did not comply with Revenu Québec’s requirement to pay as the bank had also received a notice to stay the requirement from a trustee of the company.
TD Bank is appealing a reassessment that established its tax liability at $2,868, after Revenu Québec had taken $6,000 from the company’s bank account. The bank argues that since it had not paid the amount claimed by Revenu Québec when it received the notice of stay, a subsection of the Bankruptcy and Insolvency Act makes any former seizure proceedings ineffective.