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 the ways taxpayers may correct tax mistakes after these two decisions of the Supreme Court.
In my remarks, I suggested taxpayers would be wise to review the revised requirements for rectification, and to consider the other remedies that may be available. I cited a list of potential remedies and, as a starting point, a selection of cases on these remedies:
- Stone's Jewellery Ltd. v. Arora (2009 ABQB 656) – Discussion of rescission and declaratory relief
- 771225 Ontario Inc. v. Bramco Holdings Co. (ONCA) ([1995] O.J. No. 157) – Discussion of jurisdiction of superior courts to provide relief from mistake (see in particular the dissent of Justice Grange)
- TCR Holding Corp. v The Queen (2010 ONCA 233) – Discussion of rectification principles and rescission
- Orman v Marnat (2012 ONSC 549) – Discussion of rectification and declaratory relief
- Twomey v The Queen (2012 TCC 310) – Tax Court interpretation of corporate documents
- Lau v. Canada (2012 BSCS 2384) – Discussion of rectification and relief available under B.C. Business Corporations Act
- Shafron v KRG Insurance Brokers (Western) Inc. (2009 SCC 6) – Discussion of severance of contract provision (non-tax case)
The Supreme Court's decision in Fairmont did not diminish or alter the other remedies that may be available to a taxpayer following an unintended tax result. I suggest that these other remedies may become more significant as taxpayers and their professional advisers determine how a particular tax mistake may be corrected following Fairmont and Jean Coutu.
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