{"id":1367,"date":"2015-01-05T17:25:49","date_gmt":"2015-01-05T17:25:49","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1367"},"modified":"2015-01-05T17:25:49","modified_gmt":"2015-01-05T17:25:49","slug":"superior-court-allows-rectification-of-resolutions-to-avoid-fx-gain","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2015\/01\/superior-court-allows-rectification-of-resolutions-to-avoid-fx-gain\/","title":{"rendered":"Superior Court allows rectification of resolutions to avoid FX gain"},"content":{"rendered":"<p>In <em>Fairmont Hotels Inc. et al v. A.G. Canada<\/em>, <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2015\/01\/2014-ONSC-7302.pdf\">2014\u00a0ONSC 7302<\/a>, the Superior Court of Ontario exercised its discretion to allow Canadian companies in a group to retroactively convert share redemptions (in 2007) into loans instead, under the equitable remedy of rectification.\u00a0 The Court applied the Ontario Court of Appeal\u2019s well-known decision in\u00a0<em>Juliar v. Canada (Attorney-General)<\/em> (1999), 50 OR (3d) 728 (C.A.), saying that the demonstrated purpose of the various transactions in 2007 was not to redeem the shares per se, but rather to unwind the existing financing structure on a tax-free basis. \u00a0The redemption of shares was mistakenly chosen as a means to achieve this purpose (see paragraph 43).\u00a0 If rectification were not granted in this case,\u00a0CRA would have an unintended gain arising from the mistake (see paragraph 44).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <em>Fairmont Hotels Inc. et al v. A.G. Canada<\/em>, <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2015\/01\/2014-ONSC-7302.pdf\">2014\u00a0ONSC 7302<\/a>, the Superior Court of Ontario exercised its discretion to allow Canadian companies in a group to retroactively convert share redemptions (in 2007) into loans instead, under the equitable&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1367","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1367","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=1367"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1367\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1367"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1367"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1367"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}