Royal Bank of Canada v. Tuxedo Transport Ltd., 2000 DTC 6501 (BCCA)

The chambers judge concluded that the deemed trust arising in respect of a failure to make source deduction from August through November 1996 did not apply to property of the taxpayer that subsequently came into existence. The Court of Appeal overturned this finding, indicating (at p. 6504) that "beginning with the date the deductions are made, the trust continues forward in time and attaches to any property of the debtor as it comes into existence".

In reversing a finding of the chambers judge below, the Court found that his interpretation effectively added words of limitation to the word "property" in s. 227(4.1) by confining that term to that which existed when the trust under s. 227(4) became operative.