Tax Litigation & Tax Dispute Resolution

Dealing with Taxing Authorities

We routinely deal with Canada Revenue Agency and provincial and municipal taxing authorities, and we aim to resolve tax controversies with the taxing authorities in order to avoid the time and expense of litigation.

We can also help you navigate the Canada Revenue Agency’s various administrative programs, such as the Taxpayer Relief Program, which forgives penalties and interest, or the Voluntary Disclosure Program, which provides amnesty in relation to interest, penalties and prosecution where you voluntarily come forward and disclose a failure to report all of your taxable income in previous years.

We also have a record of success in obtaining technical interpretations, rulings and advance pricing agreements for clients.

Tax Litigation

Our tax litigators and dispute resolution practitioners have extensive experience with appeals in the Tax Court of Canada, Superior Courts of the Provinces, Saskatchewan Court of Appeal and Federal Court of Appeal. They also represent clients in defending against tax fraud and criminal tax evasion charges. Our experienced tax practitioners provide practical and cost-effective representation and advice tailored to the goals of our clients.

MLT Aikins tax litigators have taken a leading role in challenging government tax and royalty assessment practices, including a recent leading case on the deductibility of provincial resource surcharges under the Income Tax Act. The decision of the Tax Court of Canada (affirmed on appeal) reversed the general practices advocated by tax authorities and followed by industry. The decision represented a significant departure from the policies and interpretations of both the Canada Revenue Agency and Saskatchewan Ministry of Finance.

Our firm is also a leader in pursuing property tax assessment issues in Saskatchewan, appearing at the Board of Revision, Municipal Board and Court of Appeal. One of our most successful recent cases resulted in a decision of the Municipal Board reducing an industrial assessment from $186 million to $37 million.

Fixing Mistakes and Bringing Civil Claims

When the Canada Revenue Agency identifies fatal errors in reviewing tax transactions, our tax litigators have successfully obtained rectification and rescission orders to retroactively repair the transaction for tax purposes. Our litigators have also acted on behalf of taxpayers and insurers in pursuing civil claims against negligent tax practitioners.

• Tax advice to Federated Co-operatives Ltd. on a $138 million acquisition by plan of arrangement, including production facilities and infrastructure, of Triwest Exploration Inc., a Calgary-based oil company.
• Anderson v Benson Trithardt Noren LLP, 2015 SKQB 123, successful in obtaining a rectification order from the Court of Queen’s Bench of Saskatchewan to correct various errors made in the course of a tax-deferred rollover of property into a corporation.
• Redhead Equipment Ltd. et al v Attorney General of Canada, 2014 SKQB 172, upholding solicitor-client privilege over planning documents involving client, accountant and solicitor communications sought by Canada Revenue Agency pursuant to a Request to Provide Information and Documents in the context of an audit (appeal to SKCA heard on October 30, 2015).
• Elliott et al v. R., 2013 TCC 57, successfully overturning a Canada Revenue Agency assessment of American citizens working in Canada as residents of Canada under the Canada-U.S. Treaty tie breaker rules.
• McClarty Family Trust et al v R., 2012 TCC 80, allowing appeal of an assessment against trust and children under the GAAR and involving the kiddie tax.
• Prince Albert (City) v. Domtar Pulp and Paper Products Inc., 2011 SKCA 151. Representing the successful party in a case determining that a tax agreement with the City was ultra vires.
• Tax advice to Big Sky Farms in successful CCAA restructuring of approximately $100 million in secured and unsecured debt in Saskatchewan, Manitoba and Iowa.
• Tax advice on Saskferco Products LLC $1.6 billion sale to Yara International ASA (named the 2008 Canadian Inbound Acquisition of the Year by Lexpert Magazine).