Legal information capsules| Examination after defense: possible? |
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Last September, the Superior Court of Quebec allowed the examination of a third party after defense. A demand was made for declaratory judgment by the plaintiffs to make the necessary corrections to the documentation that was submitted to a transfer of securities made in advance.
Indeed, to avoid incurring tax consequences of this transfer, they had acted on the advice of a tax accountant who had prepared the required documentation. However, the documentation is incomplete, inaccurate and inconsistent, the books of the company contained errors in addition to some missing information, the transaction tax was a failure because it caused serious tax consequences to the plaintiffs. In this case, the Attorney General of Canada asked to interview after defense thesaid tax accountant because he could not obtain the necessary information from applicants about the work he had done in this operation. The Superior Court ruled that the tax accountant played an important role in this dispute, because he was behind all of it. She added that the more a person plays an important role in litigation or in circumstances in which it held, it will be more likely to be examined, before interrogating the other party. The examination of it was considered appropriate and justified. JE 2011-1580 |