QL Hotel Service Ltd. v. Minister of Finance, 2008 CanLII 15226 (Ont SCJ), briefly aff'd 2009 ONCA 715

In a property tax dispute, counsel moved to couple the taxpayer's appeal with a rectification application, so that the rectification would serve as an alternative if the main appeal failed. Turnbull J. allowed the motion to go forward on the grounds that the Minister, the entity likely to be adversely affected by the requested order, was already a party to the appeal. The taxpayer won the main appeal; Turnbull J. also granted the rectification order.

A transfer of tangible personal property by an Ontario corporation ("1006") to a second corporation ("QL") would have been exempt from Ontario retail sales tax if QL were a wholly-owned subsidiary of 1006 at the time of the transfer.

The Court first found that the transfer in fact qualified for this exemption as QL should be regarded as having issued one common share to 1006 (in consideration for the transfer to it of intangible personal property) immediately before the transfer to it of the tangible personal property (in consideration for the issue by QL to 1006 of special Class A shares.) The Court went on to find that if the common share had not been issued before the transfer of the tangible personal property, it would have been prepared to grant the request to rectify the QL resolution for the issuance of the common share and special shares to provide that the common share was issued first (thereby accomplishing the common continuing intention of 1006 and QL for the transfer to qualify for the exemption.)