Rectification post-Fairmont

In Slightham et al. v. AGC, 2023 ONSC 6193 (which I also discuss here), the Court granted rectification of two trust deeds where the applicants were able to prove that the deeds did not accurately reflect the intentions of the parties. The settlor, the trustees, the supervising tax lawyer, the trust lawyer and the accountant for the trusts all provided affidavits that confirmed the pre-existing agreement of the parties that dividends received by the trusts from Opco should be eligible for allocation to Holdco, one of the beneficiaries of the trusts. A drafting error, however, prohibited the allocation of Opco dividends to Holdco. (The parties had intended that only Holdco dividends be ineligible for allocation to Holdco.)

Jessica Fleming “Additional Guidance on Rectification by the Court” Tax for the Owner-Manager 24:1 (January 2024)

Print Friendly, PDF & Email