Is there a way to protect myself from section 160 liability when receiving property from my corporation?

The most reliable protection is making sure any transfer between people who don't deal with each other at arm's length happens for genuine, properly documented fair market value consideration, so there's no shortfall for section 160 to attach to in the first place. Getting a proper valuation, keeping records of what was actually paid or given in exchange, and avoiding transfers that are really gifts dressed up as sales at an artificially low price all reduce the risk directly at the source.

Beyond the transfer itself, checking the transferor's tax standing before accepting property or a payment, whether from a corporation you're a shareholder of, or a family member, gives you real information about whether section 160 exposure could even arise, since the rule only applies where the transferor actually owed tax for the relevant period. This is a step people often skip simply because it feels awkward to ask, but it's far less awkward than an unexpected CRA assessment later.

Because section 160 liability can surface years after a transfer took place and isn't limited by the ordinary reassessment timeframe, getting advice before any significant non-arm's-length transfer, rather than after receiving an assessment, is genuinely the most effective form of protection available.