Deloitte was the auditor of the Plaintiff (Taiga) and provided tax advice recommending a tax plan to Taiga. Taiga decided to implement the plan and agreed to pay Deloitte a non-contingent fee, plus an annual 20% contingent fee based on the amount of taxes saved in excess of $250,000, but with an obligation to refund proportionally the contingency fees in the event that a tax authority "successfully challenged" the tax savings. Following reassessments by CRA, Taiga agreed to settle the reassessments. Taiga sued Deloitte for negligence in failing to identify the risks of the plan; conflict of interest in recommending the plan while acting as Taiga’s solicitors; and breach of contract in refusing to refund the contingent fees following Taiga’s settlement with CRA. Taiga sought return of the fees paid to Deloitte plus damages. Deloitte filed a Counterclaim seeking fees for two years for which Taiga had claimed tax savings but not paid Deloitte. The Trial Judge dismissed all of the claims against Deloitte, awarded judgment to Deloitte on its Counterclaim, and awarded double costs in favour of Deloitte.
Deloitte was represented by Tracey M. Cohen, QC and Mark Pontin.
