Rectification
Many taxpayers do not understand our complex tax laws, and occasionally make simple errors that lead to extremely harsh consequences.
Think of a corporation that pays Capital dividends (typically tax free), one day before they were allowed to. This means that the dividend is subject to tax simply because it was paid out one day early.
Essentially, we can help by rescinding or revising a transaction where the tax consequences are not as you thought they would be, or intended them to be.
Remission Orders
If you have exhausted all available avenues within applicable legislation, and you still believe the tax authorities are treating you unfairly, there is one last option available to you.
Subsection 23(2) of the Financial Administration Act R.S.C. 1985, c. F-11 gives the government the authority to grant remission orders.
Subsection 23(2) provides as follows (emphasis added):
The Governor in Council may, on the recommendation of the appropriate Minister, remit any tax or penalty, including any interest paid or payable thereon, where the Governor in Council considers that the collection of the tax or the enforcement of the penalty is unreasonable or unjust or that it is otherwise in the public interest to remit the tax or penalty.
Here at Rosen & Associates Tax Law, we can assist with the use of the Doctrine of Rectification or by applying for a remission order. For more information please contact us today.
This posting provides information of a general nature only. It does not provide legal advice nor can it or should it be relied upon. All taxation situations are specific to their facts and will differ from the situations in the articles and postings. If you have specific legal questions you should consult with a lawyer.