The applicants invested in a Ponzi scheme through their companies.
They received payments that were reported as income and paid taxes on them.
After discovering the fraud, they applied for an order rectifying their corporate and tax records to show the payments as a return of capital, and for a declaration to that effect.
The court dismissed the claim for rectification because the documents accurately reflected the applicants' intentions at the time they were prepared.
However, the court granted a declaration that the moneys were a return of capital, without prejudice to how the payments should be treated for tax purposes by the tax authorities.
