Suggests that the phrase "liable to" can create a liability to tax; and that, in any event, the creation of liability to tax, viewed as merely an inchoate obligation to pay tax, then is crystallized through the assessment process.
"Liability" v. "debt" (pp. 716-717)
The distinction so clearly made by Jackett P in Terra Nova Properties [67 DTC 5064] between liability for tax and amounts actually payable (and therefore debts due to the Crown) was unfortunately muddied somewhat in the decision of Noël J in The Queen v. Simard-Beaudry… .
With respect, the references to "debt" in this passage are consistent with the prior jurisprudence only if they are read as references to "liability." Because the agreement in question referred to "liability for income and corporation taxes" and not to "debts" in respect of taxes, Noël J's references to "debt" are in obiter and reflect an unfortunate confusion in terminology.
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