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Canada Asks High Court to Bar Remedy for Tax Planning Mistakes

Jan. 11, 2022, 9:54 PM

Canada’s tax authorities are asking the country’s top court to restrict the use of a legal remedy allowing taxpayers to unwind tax planning transactions found to be a breach of the tax code.

The Supreme Court of Canada should overturn a lower court ruling approving the remedy, known as rescission, and provide guidance on how to apply the process in the future, an official of the Canadian attorney general and Dept. of Justice told the court Tuesday.

The dispute centers on the question of whether rescission should be allowed in cases that result in a lower tax burden for parties, ...

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