CRA’s Priority

In a recent Federal Court of Appeal case, the Court found that the Crown has priority over secured creditors regarding deductions at source that were withheld but not remitted to the Canada Revenue Agency (CRA).

The property is deemed to be held in Trust.  The secured creditor is obligated to remit to the Receiver General the proceeds that arose from property received, to the extent of the unpaid balance owed to the CRA.