Is a contract entered into by parties with a purpose to mislead the authorities of the US tax authority, or is it immoral, illegal and contrary to public policy?
British Columbia, Canada
The following excerpt is from Stevens Pools Ltd. v. Carlsen and Carlsen, 2015 BCPC 23 (CanLII):
I have little difficulty in concluding that any contract entered into by parties with, inter alia, that kind of purpose in mind is immoral, illegal and contrary to public policy. As Sutherland J. stated in Webster v. Madigan, [1994] O.J. No. 3034 (C.J.), “[i]t is beyond doubt that an agreement or scheme that is designed to mislead taxing authorities is illegal [citations omitted]” (at para 144).
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