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Does a court order trump a demand letter from Revenue Canada?

  • These are separate cases.I won a small claims case against a corporation and have a court order to collect payment.The corporation also has a demand letter for payment from Revenue Canada.Does my court order trump a demand letter(no court order,just a demand for payment letter)by Revenue Canada.I live in BC.

  • Answer:

    It's really up to the corporation to decide. While they can pay you first, my bet is they'll ask themselves "what are the consequences of non-payment", and pay Revenue Canada first. You're going to be lucky if you see any money.

michael r at Yahoo! Answers Visit the source

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Given the additional information that the corporation owes CRA money, as well as you having a judgement against them: If the judge specifically ordered them to make a payment to you, as opposed to a judgement that they owe you money, it is up to the judge to enforce it if they don't pay you. If it were the case that they had been ordered to make a payment, and failed to, they would have to justify that to the judge, and if they didn't have sufficient reason, they could be held in contempt. If it is a matter that you have a judgement against them, then it is up to you to enforce it, and neither you nor CRA have priority, in general. If the company were insolvent, declared bankruptcy, or sought protection under the CCAA, CRA would have a priority for certain kinds of debts. The CRA also has greater powers to collect from them, so they may prefer them over you. The fact that they owe CRA as well as you doesn't give them a right to not pay you, but if they aren't paying you because they already gave all their money to CRA, you'll have to stand in line or go back to court.

George

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