Supreme Court of Canada: Rectification is Alive and Well in Quebec
Earlier today, the Supreme Court of Canada delivered its decision in two Quebec rectification cases, Agence du Revenu du Quebec v. Services Environnementaux AES Inc. and Agence du Revenu du Quebec v....
View ArticleWhose Mistake? Ontario Sup. Ct. Rectifies Trust Deed
Most tax rectification cases address situations in which a professional advisor has made a mistake in the planning and execution of a transaction with the result that an unintended tax consequence...
View ArticleBrogan Family Trust: CRA Not Entitled to Notice of Rectification Application
Is the CRA entitled to notice of a rectification application? In Brogan Family Trust (2014 ONSC 6354), the Ontario Superior Court of Justice said “no”, and dismissed the Crown’s motion to set aside an...
View ArticleBrent Kern Family Trust: FCA Dismisses Appeal
In Brent Kern Family Trust v. The Queen (2014 FCA 230), the Federal Court of Appeal dismissed the taxpayer’s appeal with reasons delivered from the bench. The taxpayer had argued that the decision of...
View ArticleFairmont: Ont SCJ Unwinds Share Redemption and Substitutes Loan Arrangement
The common law doctrine of rectification operates to correct mistakes in transactions that produce (or may produce) unintended and adverse tax results. This was established in the landmark case of...
View ArticleLau: BC SC Corrects Articles of Incorporation After $17.3 Million Reassessment
Many tax rectification cases address situations in which certain transaction documents contain errors that do not accord with the parties’ intent to minimize or avoid taxes. However, there are several...
View ArticleBaytex: ABQB Grants Rectification
In Baytex Energy Ltd. et al. v. The Queen (2015 ABQB 278), the Alberta Court of Queen’s Bench considered whether rectification and/or rescission were available to address mistakes that could result in...
View ArticleMac’s: Quebec CA Affirms Denial of Rectification
In Mac’s Convenience Stores Inc. v. Canada (2015 QCCA 837), the Quebec Court of Appeal affirmed a lower court decision (2012 QCCS 2745) denying rectification of corporate resolutions that had declared...
View ArticleFairmont: OCA Dismisses Crown’s Appeal in Rectification Case
The Ontario Court of Appeal has dismissed the Crown’s appeal in Fairmont Hotels Inc. v. A.G. (Canada) (2015 ONCA 441). In Fairmont (2014 ONSC 7302), the taxpayer was successful on an application for...
View ArticleZhang: BC SC Refuses to Rectify Share Transfer
In Zhang v. Canada (A.G.) (2015 BSCS 1256), the British Columbia Supreme Court refused to grant rectification of a transaction in respect of which the taxpayers had no common intention to avoid capital...
View ArticleSCC Rectification Decisions to be Released on Friday December 9
The Supreme Court of Canada’s decisions in two rectification cases, AG (Canada) v. Fairmont Hotels Inc. (Docket #36606) and Jean Coutu Group (PJC) Inc. v. AG (Canada) (Docket #36505), will be released...
View ArticleFairmont: SCC Revises Common Law Test for Tax Rectifications
In a 7-2 decision in AG (Canada) v. Fairmont Hotels Inc. (2016 SCC 56), the Supreme Court of Canada has modified the common law test for rectification where the taxpayer has suffered an unintended and...
View ArticleJean Coutu: SCC Revises Test for Rectification under the Civil Code
On December 9, 2016, the Supreme Court of Canada rendered its judgment in Jean Coutu Group (PJC) Inc. v Attorney General of Canada (2016 SCC 55) along with its companion case Canada (Attorney General)...
View ArticleCorrecting Tax Mistakes after Fairmont and Jean Coutu
I was very glad to be a panelist for the Canadian Tax Foundation’s conference on the Supreme Court of Canada’s decisions in Fairmont and Jean Coutu. During the discussion the panelists were asked about...
View ArticleMore on Rectification in Quebec
Rectification continues to be a topic of heated debate in Quebec. After a series of decisions by the Court of Appeal last year on the subject, the Quebec Superior Court rendered an important judgment...
View ArticleSupreme Court of Canada Considers Two Quebec Rectification Cases
In what circumstances may the Superior Court of Quebec correct a written instrument that does not reflect the parties’ intent? That is the question that was considered by the Supreme Court of Canada...
View ArticleBrent Kern Family Trust: FCA Dismisses Appeal
In Brent Kern Family Trust v. The Queen (2014 FCA 230), the Federal Court of Appeal dismissed the taxpayer’s appeal with reasons delivered from the bench. The taxpayer had argued that the decision of...
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