Wannan v. Canada, 2003 DTC 5715, 2003 FCA 423 -- summary under Subsection 160(1)

The Court followed Heavyside v. Canada, 97 DTC 5026 (FCA) in finding that the liability of the taxpayer under s. 160 with respect to contributions made to her RRSP by her husband was unaffected by his subsequent bankruptcy and discharge from bankruptcy, or by the fact that she was not assessed under s. 160 until after such discharge from bankruptcy. Furthermore, in determining what was the tax liability of her husband at the time of the contributions, the Crown was not bound to treat the payment to it of a bankruptcy dividend as being applied in payment of the oldest balances owing to the Crown by the taxpayer's husband and, instead, was not precluded from applying this bankruptcy dividend, as it did, to the newest of his tax liabilities.