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:
- 771225 Ontario Inc. v. Bramco Holdings Co. (ONCA) ( 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 rectificaiton and declaratory relief
- Lau v. Canada (2012 BSCS 2384) – Discussion of rectification and relief available under B.C. Business Corporations Act
The Supreme Court’s decision in Fairmont did not diminish or alter the other remedies that may be available to a taxpayer following an intended 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.