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Long story short, five years ago I opened (and became administrator of) a corporation for a friend (he was in bankruptcy). I recently "reacquired control", only to discover no GST was ever paid, no income taxes paid, nothing filed, etc even though the company had revenues of 400-500k a year. Most of the money went to my "friend", either as checks written out by him to himself (he was a signing officer), ATM cash withdrawals or online banking payments/transfer. After crunching some rough numbers, best case scenario I owe (at least) 100k in GST/PST. I've begun talks with Revenu Quebec (this is in Montreal, Quebec) regarding monies owed.

Question:

Would I be able to deduct any GST/PST payments as a loss of some kind from my income? (I have a regular 40-hour week job.)

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Get yourself a Tax Lawyer. Fast.

Don't talk with Revenu(e) anybody until you have discussed your case throughly with them.

It seems doubtful that you would be able to claim any deduction, however you may be able to stage payments somehow.

Good Luck

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