Can, and Should, the Parole Evidence Rule Be Invoked by or Against Tax Authorities in Tax Litigation? Distilling Lessons from U.S. Jurisprudence

Bulletin for International Taxation, Volume 67, Number 9, September 2013, pages 474-490

Posted: 6 Oct 2013 Last revised: 12 Aug 2016

Dr. Amir Pichhadze

Deakin University, Geelong, Australia - Deakin Law School

Date Written: September 1, 2013

Abstract

In recent years, Canada’s courts have expressed a number of conflicting views about whether the parol evidence rule can be invoked by or against the Minister of National Revenue (Minister) in tax disputes. Unfortunately, the courts in these cases did not elaborate, to a sufficient extent, on the justifications for their position on this issue. It is an open question, therefore, whether and why the parol evidence rule should (or should not) apply to the Minister.

In the U.S., Federal and State courts have explored this same issue extensively, and have produced meaningful jurisprudence that can be a source of influence for Canada as well as for any other jurisdiction whose law on this issue may be similarly unsettled and/or underdeveloped. The purpose of this paper is to distill lessons from the US jurisprudence. These lessons can then be transplanted elsewhere as a source of influence and guidance. For the purpose of example, the paper will apply these lessons to address the issue in the contexts of Canadian law.

Notes: The paper is the Second Prize winner in the 2013 Annual Law Student Essay Competition of the American Judges Association (AJA).

Keywords: Parol Evidence Rule, Taxation, Litigation, U.S., Canada

JEL Classification: E62, H2, H71, K1, K4, K41

Suggested Citation

Pichhadze, Dr. Amir, Can, and Should, the Parole Evidence Rule Be Invoked by or Against Tax Authorities in Tax Litigation? Distilling Lessons from U.S. Jurisprudence (September 1, 2013). Bulletin for International Taxation, Volume 67, Number 9, September 2013, pages 474-490. Available at SSRN: https://ssrn.com/abstract=2336222

Amir Pichhadze (Contact Author)

Deakin University, Geelong, Australia - Deakin Law School ( email )

221 Burwood Highway
Burwood
Burwood, Victoria 3125, Victoria 3125
Australia

Paper statistics

Abstract Views
447