The applicants sought rectification of a 2012 trust resolution to accurately reflect the allocation of capital gains to beneficiaries, enabling them to utilize their Lifetime Capital Gains Exemption.
The Canada Revenue Agency had reassessed the Trust, taxing the income within the Trust due to the resolution's lack of specificity regarding beneficiary allocations, leading to double taxation.
The court found that the applicants proved a prior agreement to allocate at least $375,000 of taxable capital gains to each of Heidi, Gregory, and Philip, and that the resolution failed to accurately record this.
The application for rectification was granted.
