Strategies for Executive Compensation: Design and Tax Issues for a ...

Potential Tax Relief for
Later Year Clawbacks (cont’d)
• Remission
– “The Governor in Council may, on the
recommendation of the appropriate Minister, remit
any tax or penalty, including any interest paid or
payable thereon, where the Governor in Council
considers that the collection of the tax or the
enforcement of the penalty is unreasonable or unjust
or that it is otherwise in the public interest to remit the
tax or penalty”
– no public record of such a remission order having
ever been granted in the case of a clawback
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Potential Tax Relief for
Later Year Clawbacks (cont’d)
• Unjust enrichment
– enrichment without juristic reason
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Potential Tax Relief for
Later Year Clawbacks (cont’d)
• Rectification
– “In order for a party to succeed on a plea of
rectification, he must satisfy the Court that the parties,
all of them, were in complete agreement as to the
terms of their contract but wrote them down
incorrectly. It is not a question of the Court being
asked to speculate about the parties’ intention, but
rather to make an inquiry to determine whether the
written agreement properly records the intention of
the parties as clearly revealed in their prior
agreement.”
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