If you received property from someone who owes tax, you may “inherit” their tax problems.
If you received property from someone who owes tax, you may “inherit” their tax problems.
Section 160 of the Income Tax Act lets CRA collect one person's tax debt from someone else. If you received property, such as money, a house or shares, from a spouse, relative or other non-arm's length person who owed tax at the time, and you paid less than fair market value, CRA can assess you personally.
Your liability is generally limited to the lesser of the transferor's tax debt and the amount by which the value you received exceeded what you paid. CRA can issue a section 160 assessment at any time, so these often arrive years after the transfer.
Indus Canada CPA reviews the assessment for errors in the underlying debt, the valuation and the consideration you gave. Where the numbers don't hold up, we prepare an objection and negotiate with CRA, working with our alliance lawyers where litigation or asset protection is involved.
Our team works alongside trusted legal and financial alliance partners to deliver coordinated tax strategy, compliance, and advocacy — so clients move forward with clarity and confidence.
If you received property from a non-arm's length person who owed tax, for less than fair market value, CRA can assess you under section 160 for part or all of their debt.
No. CRA can assess at any time, which is why many assessments relate to transfers from years earlier.
Yes. Common grounds include the value of the property, the consideration you gave and whether the transferor actually owed the tax at the time.
Have a Section 160 Assessment matter? Book a free 30-minute call to talk it through with our team.
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