Further Queries

An analysis by Borden Ladner Gervais

 

On May 26, 2023, the Supreme Court of Canada (SCC) made a ruling in the case of Deans Knight Income Corp. v Canada, 2023 SCC 16 (Deans Knight). The case dealt with the general anti-avoidance rule (GAAR) in section 245 of the Income Tax Act, which allows the Canada Revenue Agency (CRA) to reassess the tax consequences of a transaction if it is found to be abusive.

 

In order for GAAR to apply, the taxpayer must have engaged in a transaction or series of transactions with the main purpose of obtaining a tax benefit, resulting in an abuse or misuse of the Act’s provisions.

 

Steve Suarez, Laurie Goldbach and Elizabeth Egberts of our Canadian firm Borden Ladner Gervais analyse the key takeaways and facts, as well as the judgment and its impact in further detail.

Read the full analysis here.

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Canada | Income Tax | Tax

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