The applicant taxpayers sought equitable rectification of two corporate director's resolutions that declared dividends in June 2016.
The applicants' accountant mistakenly believed that the tax-free proceeds from the sale of corporate goodwill were immediately available in the capital dividend account, resulting in unintended Part III tax liability.
The court dismissed the application, finding that the resolutions accurately reflected the parties' antecedent agreement to declare the dividends in June 2016, and that the applicants were seeking impermissible retroactive tax planning.
The court also noted a lack of due diligence and the availability of adequate legal remedies.
