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Canada Rectification

Bennett Jones LLP

Rectification Strikes Back: B.C. Court of Appeal Allows Rectification of Tax Mistake

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On October 30, 2019, the British Columbia Court of Appeal upheld the rectification of an erroneously calculated capital dividend account, saving the corporate taxpayer from a punitive 60% tax. ...more

Bennett Jones LLP

SCC Confirms General Intention not Sufficient for Rectification in Tax Cases

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On December 9, 2016, the Supreme Court released its decisions in two tax rectification cases: Jean Coutu Group (PJC) Inc. Canada (Attorney General), 2016 SCC 55 and Canada (Attorney General) Fairmont Hotels Inc., 2016 SCC 56....more

Blake, Cassels & Graydon LLP

Rectification in a Tax Context: The Intention Standard Prevails

A drafting mistake in an agreement can result in significant and unintended tax consequences. In the recent case of Baytex Energy Ltd. v. Canada (Attorney General) (Baytex), the Court of Queen’s Bench of Alberta (Court)...more

Bennett Jones LLP

Rescission: Another Remedy to Address Unintended Tax Consequences

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While the equitable remedy of rectification is often sought as a means to address unintended tax consequences, rescission is also an available remedy in the appropriate cases. The British Columbia Supreme Court’s decision in...more

Bennett Jones LLP

Supreme Court Endorses Key Tax Principle: Tax Law Should Follow Private Law Agreements

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The Supreme Court of Canada recently endorsed a fundamental principle in Canadian tax law – namely that absent sham or statutory recharacterization rules, “tax law applies to transactions governed by, and the nature and legal...more

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