ABSTRACT
In Canada (Attorney General) v Collins Family Trust (2022), a majority of the Supreme Court of Canada held that taxpayers may not use the equitable remedies of recission and rectification to retroactively undo or correct transactions that lead to unanticipated tax liability. While the Supreme Court’s decision departs from the leading common law precedent on the use of equitable remedies in taxation – the UK Supreme Court’s decision in Pitt v Holt – the Court distinguishes Pitt v Holt on the basis of doctrinal differences between Canadian and English law.
This comment advances three broader justifications for the prohibition on the use of equitable remedies in taxation …
Gillis, Rory, The Limits of Legal Substance: Tax Avoidance and Equitable Remedies after Collins Family Trust (October 2, 2022), (2002) 66(3) Canadian Business Law Journal 323.
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