Garnishment
27. (1) When the collector has knowledge or suspects that a person is or is about to become indebted or liable to make any payment to a person liable to pay any tax under this Act, the collector may, by registered letter or by a letter served personally, require the first-named person to pay the money otherwise payable to the second-named person in whole or in part to the Treasurer of Ontario on account of the liability under this Act. R.S.O. 1990, c. P.32, s. 27 (1). Idem (2) The receipt of the Treasurer for money paid as required under this section is a good and sufficient discharge of the original liability to the extent of the payment. R.S.O. 1990, c. P.32, s. 27 (2). Liability of debtor (3) Every person who has discharged any liability to a person liable to pay any tax under this Act without complying with the requirements under this section is liable to pay to the Treasurer an amount equal to the liability discharged or the amount that the person was required under this section to pay to the Treasurer, whichever is the lesser. R.S.O. 1990, c. P.32, s. 27 (3). Service on garnishee (4) Where a person who is or is about to become indebted or liable to make a payment to a person liable to pay any tax under this Act carries on business under a name or style other than the person’s own name, the registered or other letter under subsection (1) may be addressed to the name or style under which the person carries on business and, in the case of personal service, shall be deemed to have been validly served if it has been left with an adult person employed at the place of business of the addressee. R.S.O. 1990, c. P.32, s. 27 (4). Idem (5) Where the persons who are or are about to become indebted or liable to make a payment to a person liable to pay any tax under this Act carry on business in partnership, the registered or other letter under subsection (1) may be addressed to the partnership name and, in the case of personal service, shall be deemed to have been validly served if it has been served on one of the partners or left with an adult person employed at the place of business of the partnership. R.S.O. 1990, c. P.32, s. 27 (5). Garnishment of wages (6) Subject to the provisions of the Wages Act, where the collector has under this section required an employer to pay to the Treasurer on account of an employee’s liability under this Act money otherwise payable by the employer to the employee as remuneration, the requirement is applicable to all future payments by the employer to the employee in respect of remuneration until the liability under this Act is satisfied and operates to require payments to the Treasurer out of each payment of remuneration of such amount as may be stipulated by the collector in the registered letter or letter served personally. R.S.O. 1990, c. P.32, s. 27 (6). Failure to remit (7) Where any person, without reasonable excuse, has failed to remit to the Treasurer the money as required under this section, the collector may apply before a judge of the Superior Court of Justice for an order directing such person to remit the money which the person has failed to remit. R.S.O. 1990, c. P.32, s. 27 (7); 2001, c. 23, s. 183. Delivery of Notices