How the CRA Seized a Lamborghini

When You Owe the CRA money, Your Assets Are at Risk.

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The CRA has strong collection powers. If you owe taxes and don’t pay, they can seize your property—including luxury assets like a Lamborghini—to recover the debt.

One case that highlights this is Minister of National Revenue v. Pollock, where a Lamborghini was seized to cover unpaid GST and income tax.

How the CRA Can Seize a Car

When a taxpayer owes money, the CRA can take the following steps:

1. Register a Tax Lien – The CRA can file a legal claim against your assets by registering a certificate in Federal Court.
2. Issue a Writ of Seizure – Once registered, the CRA can obtain court orders to seize and sell your property.
3. Work With Bailiffs and Police – The CRA can instruct a bailiff to seize property or coordinate with law enforcement if the asset was previously involved in a criminal investigation.
4. Sell the Asset to Cover the Debt – Once seized, the CRA can auction the property to recover unpaid taxes.

Court Case: Minister of National Revenue v. Pollock

In this case, a Lamborghini was originally seized by the RCMP’s Proceeds of Crime section. Later, the CRA stepped in and seized it again because the owner, Kim Doull, owed significant tax debts.

A key issue in the case was whether another individual, Rick Pollock, had a legal claim to the car. He argued that Doull had transferred ownership to him as security for a loan. However, Pollock never registered his security interest, which meant that under Alberta’s Personal Property Security Act (PPSA), his claim was weaker than the CRA’s.

The court ruled in favour of the CRA, allowing them to sell the car to pay off Doull’s tax debts.

Lessons from This Case

• The CRA’s priority is stronger than unregistered claims – If a taxpayer hasn’t legally secured their assets against seizure, the CRA can take them.
• Even assets held by third parties aren’t always protected – If a tax debtor transfers an asset to someone else without proper documentation, the CRA may still be able to seize it.
• Ignoring tax debt won’t make it go away – Once the CRA takes enforcement action, it’s difficult to reverse.

Can the CRA Seize Your Car?

Yes, if you have unpaid tax debts, the CRA can seize your vehicle—even if you believe it’s protected by another agreement. If you’re behind on taxes, it’s better to work out a payment plan with the CRA before enforcement actions begin.

If you’re facing tax collection issues, talk to a CPA or tax professional to explore your options.

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This is not legally binding tax advice. This is educational analysis. Say hello if you need help.

hello@taxesmadesimple.ca

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