On February 11, the Quebec Court of Appeal rendered its decision in the proposal of Sail Plein Air inc. concerning the matter that opposed Sail to the Canada Revenue Agency and Revenu Québec on the status of the tax claim concerning the debt forgiveness (or debt settlement)1 .
At first trial, Justice Pinsonnault J.C.S., dismissed Sail’s application for a declaratory judgment and held that the tax claims arising from the debt relief did not constitute provable claims as defined by the proposal in bankruptcy2 and the revenue agencies were therefore entitled to collect them. The Quebec Court of Appeal has dismissed Sail’s appeal.
The main issue in this case was to determine whether the full implementation of Sail’s proposal…