Legal Representative

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See Also

Mingle v. The Queen, 2022 TCC 34

a de facto executor was a legal representative

Wong J rejected the taxpayer’s submissions that he had renounced his executorship shortly after being appointed and that his subsequent acts in jointly (with his brother) transferring estate property to his daughter were performed qua a trustee de son tort and not as an executor – so that he should not have been assessed under s. 159(3) for unpaid estate taxes given their failure to obtain a clearance certificate. Regarding the taxpayer’s second argument, Wong J stated (at para. 28):

[I]f Mr. Mingle was a trustee de son tort (i.e. a person who is not appointed as trustee but whose course of conduct suggests that he be treated as one), I believe that for income tax purposes, he would have still fallen within the definition of “legal representative” which encompasses “any other like person ... dealing in a representative or fiduciary capacity with the property.”

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 159 - Subsection 159(3) even if the taxpayer had renounced his executorship, his acting as a trustee de son tort would have rendered him liable under s. 159(3) 290
Tax Topics - Income Tax Act - Section 222 - Subsection 222(5) - Paragraph 222(5)(c) assessment of executor under s. 159(3) within the s. 222(4) 10-year period restarted the limitation period pursuant to s. 222(5)(c) 63

Groscki v. The Queen, 2017 TCC 249 (Informal Procedure)

director without liquidator authorization was not legal representative

Bocock J found that a director was not a “legal representative” of a Macao-incorporated corporation that disposed of all of its inventory (being substantially all of its assets) without CRA providing a s. 159(2) clearance certificate given that the director did not do a lot more than directors normally do and, in particular did not act as a liquidator given that there was no liquidation process authorized by the corporation nor any authority granted to him to act as a liquidator, de facto or otherwise.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 159 - Subsection 159(3) a director was not liable for failure to obtain a s. 159(2) certificate before his corporation disposed of most of its assets 328
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(p) - Subparagraph 20(1)(p)(ii) reporting of bad debt deduction on “net” basis not permitted/specifically-evidenced claims required 316

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