• Ontario Court of Appeal and British Columbia Supreme Court
  • January 23, 2019
  • Since the Supreme Court of Canada restricted the scope of rectification in Canada (Attorney General) v. Fairmont Hotels Inc., 56 tax advisers have been forced to consider other equitable remedies when seeking to fix mistakes that result in unintended tax liability. Two recent decisions, Canada Life Insurance Company of Canada v. Canada (Attorney General)57 and 5551928 Manitoba Ltd. (Re), 58 address the interaction of alternative equitable remedies with the policy comments from Fairmont Hotels. However, rather than clarifying the boundaries of equitable remedies in the tax context, the dichotomy of these decisions leaves tax practitioners with uncertainty as to the scope and breadth of Fairmont Hotels.