Gaar

The GAAR applied: Deans Knight Income Corp v Canada

In Deans Knight Income Corp. v Canada, 2023 SCC 16, (“Deans Knight”) the Supreme Court of Canada (“SCC” or “the Court”) dismissed the taxpayer’s appeal, holding that the General Anti-Avoidance Rule (“GAAR”) under s. 245 of the Income Tax Act, RSC 1985, c 1 (5th supp) (“ITA” or “the Act"), applied to a series of […]

Gladwin Realty Corporation v. Canada : Abusing Specific Anti-Avoidance Rules in Partnerships

Since the creation of the Income Tax Act ("ITA"), there have been taxpayers trying to avoid taxes in any manner possible. Although taxpayers are free to arrange their matters in the most tax-efficient way, there is a line between "tax efficient" and "tax abusive" planning. The General Anti-Avoidance Rules (the "GAAR"), as defined in section […]