Law360 Canada ( June 17, 2022, 2:08 PM EDT) -- Appeal by the Attorney General of Canada from a decision of the British Columbia Court of Appeal that upheld a petition that granted equitable rescission to the respondent trusts. Two companies implemented a plan to protect corporate assets from future creditors without incurring income tax liability. The plan was based in part on interpretations published by the Canada Revenue Agency (“CRA”) of ss. 75(2) and 112(1) of the Income Tax Act. It involved the creation of family trusts, to which dividends were paid. After the plans were implemented, the Tax Court of Canada, in an unrelated matter, interpreted s. 75(2) differently than had been commonly accepted by tax professionals and CRA. CRA reassessed the trusts’ returns and imposed unanticipated tax liability. The chambers judge granted the trusts’ petitions for the equitable rescission of the transactions that led to, and included, the payment of dividends. The Court of Appeal dismissed the Attorney General’s appeal....