FOREIGN TAX CLAIMS AND JUDGMENTS IN CANADIAN COURTS
AbstractAlthough tax evasion is highly immoral, Canadian courts today will not recognize or enforce a foreign tax claim either directly or indirectly. In this article the author argues that special conflict rules should be devised to deal with the international recognition and enforcement of tax claims. He looks at the history surrounding the enforcement of Lord Mansfield’s rule against the enforcement of tax laws and examines in this context a decision holding that foreign States cannot directly or indirectly enforce their tax claims in Canada. He then discusses the legal foundation of Lord Mansfield’s rule and offers arguments for recognizing and enforcing tax claims between Canadian provinces. He also criticizes Lord Mansfield’s rule and offers possible solutions for meeting its shortcomings. He concludes by examining progressive trends in Quebec and suggests that in order to eliminate all possibilities of tax evasion or avoidance, tax agreements between Canada and other nations need to be changed.
Keywords:Conflict of Laws, Tax Law
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