Rectification & Rescission

courts cannot exercise their equitable jurisdiction to reverse or alter a completed transaction to avoid unintended tax consequences

declaration made by the parties that their contribution was annulled under Dutch law appeared to have retroactive effect

CRA will not anticipate a judicial rectification

jurisdiction declined in a requested shareholding rectification whose raison d’être was a CRA assessment

CRA awaiting resolution of AES and Riopel cases

Fairmont cast doubt on but did not overrule Pallen

a sale agreement rectified to turn it into a 2-step sale that no longer generated a s. 84.1 dividend

a rectification judgment was “justifiably obtained” and, therefore, followed for tax purposes

resolution for incorrectly calculated capital dividend rectified to reflect intention to clean-out CDA

a transaction resulting from a tax mistake should not be remedied under the Court’s general equitable jurisdiction