At some point, I will write a longer piece on requirements to pay, but for now I will rest content with pointing to Encan Construction Ltd v. The Queen, 2007 TCC 579, as an example of the heavy burden they can impose on a taxpayer.
The appellant sent a cheque to a tax debtor one day after receiving a requirement from the CRA in respect of the debtor. The CRA assessed the appellant for failing to pay the amount to the CRA. The appellant tried to argue that it did not know about the requirement when it made the payment and that it had not received any warning that the requirement was coming.
Result: Appeal dismissed. The appellant gets to pay the tax debtor’s tax debt (or a part of it) to the fisc.
