Wannan v. Canada, 2003 DTC 5715, 2003 FCA 423 -- summary under Payment & Receipt

The quantum of the taxpayer's liability under s. 160 turned upon whether a bankruptcy dividend received by the Crown from the trustee in bankruptcy for her husband should be considered to reduce the tax liability of her husband at the time he made contributions to her RRSP rather than being applied to more recent tax liabilities. The taxpayer argued that Clayton's case should be applied to deem the dividend to be applied to the oldest debt. Sharlow J.A., however, was not satisfied that the Crown was precluded from applying the bankruptcy dividend, as it did, to the newest of the tax liabilities of the taxpayer's husband.