Section 160 Assessments

If you received any property from a person who owes taxes to the CRA (usually, a family member or a related corporation) for less than fair market value consideration, you may be personally liable to pay that other person's tax under Section 160 of the Income Tax Act (Canada). 

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The rule in Section 160 applies regardless of whether you still own the property you received, and regardless of whether you knew that the transferor owed tax. The rule sometimes produces harsh results, however, a number of defences are available to taxpayers.