Two recent decisions advance the law of privilege. Lizotte v Aviva Insurance Company of Canada (2016 SCC 52) and MNR v Iggillis Holdings Inc. (2016 FC 1352) respectively clarify the difference between solicitor client privilege (SCP) and litigation privilege (LP), and also establish that so-called advisory common interest privilege (CIP) - privilege that protects transactional negotiations between parties with separate legal representation - does not exist in Canada. The two decisions are reminders of the scope of privilege in the tax context, and also highlight the importance of understanding the proper ambit of privilege when engaging in tax transactions or tax litigation.
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In Fairmont Hotels Inc. (2016 SCC 56) and Jean Coutu Group (2016 SCC 55) the Supreme Court of Canada (the “SCC”) clarified the law of rectification. The result might be disappointing for taxpayers and tax practitioners alike, yet the decisions bring Ontario back in line with the rest of Canada by establishing that an application for rectification refer to a detailed intention.
The CRA has a mandate to improve compliance of GST/HST registrants and to encourage GST/HST registrants to meet their filing requirements. As part of its commitment to this mandate, the CRA will be implementing changes to its current processes.
At the CRA Roundtable at the recent CPA’s 2016 Commodity Tax Symposium, the CRA declared a current mandate to use alternative audit methods more frequently. Two recent cases are a useful reminder of what may be in store for Canadian GST registrants in that regard, namely 9103-4348 Québec Inc v The Queen (2015 TCC 220) (“The Golden Pub”), and 9091-2239 Québec Inc (2016 TCC 198) (“Hamade”)
The recent FCA decision, Canada v Chriss (2016 FCA 236), underscores the resignation obligations of directors. If directors do not execute their resignations properly and completely, they will remain liable for the actions of the corporation, including director’s liability assessments issued by taxing authorities like the Canada Revenue Agency (“CRA”).