Tax planning is very difficult and stressful to handle on your own and it is not at all easy to achieve the tax planning technique which perfectly fits the case at the first go, so in case of tax errors a rectification order provides a safety net for taxpayers who make a tax planning error. If you are subject to any adverse taxes from misguided tax planning or its implementation, a rectification order may be an appropriate remedy for you. Our best Toronto income tax planning lawyers will provide you with effective ways to overcome any unintended tax planning errors. When a taxpayer encounters tax consequences due to tax planning tax errors our experienced Toronto tax lawyers may be able to obtain a rectification order from a provincial court that will correct the document or instrument giving rise to the unintended tax consequences.
A rectification order is a feature of Anglo-Canadian contract law, and has particular significance for undoing tax-planning errors in some cases. Once such an order is obtained, the Canada Revenue Agency (“CRA”) will be bound by the provincial court’s decision. When due to a error the documents do not reflect the original intention of the parties then in such a case a rectification order is used to correct that document. A rectification order is an equitable remedy which the courts grant to provide the taxpayer with a second chance but undoing the mistake. A rectification order traces its roots to the courts of equity and thus can only be decided by certain provincial courts that have the proper jurisdiction. Thus, this remedy cannot be issued by the Tax Court of Canada. Hence proper jurisdiction is very essential. In the tax context, the courts have not limited this remedy to correcting inadvertent drafting errors but they have also used it to correct errors due to a misunderstanding of the facts or the law.
The remedy of obtaining a rectification order has met with strong opposition from the CRA because it suggests that courts will retroactively fix agreements to conform to the parties’ tax planning goals, even though the agreement itself was drafted exactly as the parties intended. Contact our best Toronto income tax planning lawyers to determine if you can avail yourself of this remedy. A rectification order means that botched tax planning will be given a second chance. Tax planning is difficult to manage on your own and thus errors can be made but our top Toronto income tax planning lawyers will not only provide effective tax planning techniques but also help you correct your tax planning errors. You can speak with our Toronto income tax planning lawyers and we will work with you to find a solution that best fits your case.