International Tax Monitor quotes Toronto Lawyer Jenny Mboutsiadis in an article about the Supreme Court of Canada’s decisions in rectification cases Fairmont and Jean Coutu.
”Jenny P. Mboutsiadis, a tax partner in the Toronto office of Fasken Martineau DuMoulin LLP, agreed that rescission is an option if a situation doesn't meet the legal test for rectification. Parties could rescind a contract, redraft it and then execute the new version.”
“However, not only is that not possible in every situation, it could open up a Pandora's box of other legal issues,” she told Bloomberg BNA in a Dec. 10 e-mail.
“Mboutsiadis, who spent 11 years with the federal justice department and served on the committee that adjudicates rectification requests, said she sees the rulings as giving much-needed direction after provincial courts have inconsistently applied the Ontario Court of Appeal's 2000 ruling in Juliar v. Canada (Attorney General), which took a liberal approach to rectification.”
“Although not favorable outcomes for Fairmont and Jean Coutu, these decisions foster predictability in the law for future applicants,” Mboutsiadis said. “The lesson in all of this is that the most cost-effective thing to do when engaging in transactions that may attract tax is to get proper tax advice at the start from a reputable tax practitioner with relevant experience and to diligently record the intention behind the transactions.”