Robert Kreklewetz and John Bassindale, “SCC on Rectification Requirements” , Canadian Tax Highlights 25:1 (January 2017) comments on Fairmont Hotels (2016 SCC 56) and Jean Coutu Group (2016 SCC 55) and includes the following statement:
Interestingly, Wagner J took the opportunity to discuss how the SCC’s decision in Jean Coutu was consistent with tax policy. The SCC said that it is a fundamental principle of the Canadian tax system that “tax consequences flow from the legal relationships or transactions established by taxpayers” and that, furthermore, a closely related principle—the Duke of Westminster principle—says that “taxpayers have the right to order their affairs to minimize tax payable.” As a corollary, taxpayers who fail to structure their affairs properly may pay more tax. Accordingly, rectification is generally not available to taxpayers who agreed to a specific tax plan but then realized an unintended tax consequence: tax consequences flow from the decisions made by taxpayers, not from their intentions, motivations, or objectives.
Robert Kreklewetz and Kathryn Walker, “Rescission (not Rectification) for Mistakes” , Canadian Tax Highlights 25:1 (January 2017) comments on Re Pallen Trust (2015 BCCA 222).