When a legal document fails to reflect the true intention of the parties due to a mistake, rectification is a legal process where a court corrects it to prevent unintended tax consequences.
Incorrect share structures lead to adverse tax outcomes
Misstated dividend allocations or incorrect tax elections
Drafting errors in trust documents affect their legal standing
Mistakes in the implementation of rollover or estate plans
Unintended triggering of tax liabilities due to simple mistakes
Partnership documents create unintended tax issues
You must demonstrate there was a prior, clear mutual intention between the parties that was not reflected in the document.
The document failed to reflect that intention due to a genuine error, not as a form of retroactive tax planning.
Courts require convincing proof of the mistake and the precise form of the intended correction.
We conduct a detailed review of transaction histories and relevant legal documents.
We gather persuasive evidence of the parties’ true, original intentions.
We prepare and file a robust court application seeking rectification.
We coordinate with accountants and respond to any CRA challenges.
We meticulously review transaction histories to find the root of the error.
Skilled at gathering the proof needed to meet the high burden for rectification.
We prepare effective court applications and represent your interests.
We work closely with your accountants and tax advisors for a unified strategy.