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Limitations Acts - "Statute of Limitations"

The Federal Government and the Provinces have Limitation Acts which provide a limit on the time an unsecured debt survives. Speak to a trustee about your unsecured debts and the statute of limitations. If an unsecured debt is not collected or payments are not made on the unsecured debt then after a certain time no legal action can be taken to collect the debt.

A March 4, 2003 decision of the Supreme Court of Canada, Markevich v. The Queen decided that limitations applied to CRA as well as other Crown proceedings. Section 32 of the Crown Liability and Proceedings Act and Section 3 (5) of the BC Limitation Act barred collection of the Federal and Provincial portions of the debt since the debt was more than 6 years old. This decision was "overruled" when parliament amended section 222 of the Income Tax Act to provide for a 10 year limitation period. Collins v. Canada, 2005 FCA 1431 CanLII.

Examples from various provinces and the Federal Government: