Question: If I owe revenue canada penalties and interest and/or back income tax, can I claim in bankruptcy
Answer: Generaly in Canada income tax debts including penalties and interest, unless they originate as a result of filing false tax returns are debts discharged or forgiven in a bankruptcy.
In the case of second or subsequent bankruptcies the Courts will want to know how big a factor Revenue Canada played in the prior bankruptcies. If a person is going bankrupt for a second time and amounts owed to Revenue Canada are significant both times, they will want to ensure you are tax compliant and are paying all taxes on a current basis. In cases such as these the Courts will want proof from Revenue Canada that all tax filings and tax payments are up to date before they will consider a bankruptcy discharge.