The general anti-avoidance rule: Are we moving away from consistency, certainty & predictability

The General Anti-Avoidance Rule (the "GAAR"), contained in section 245 of the Income Tax Act (Canada) (the "Act"), is a provision which allows the Canada Revenue Agency ("CRA") to redetermine the tax consequences of a transaction(s) entered into by a taxpayer in an effort to deny the tax benefit(s) otherwise enjoyed by the taxpayer as a result of entering into the impugned transaction(s).

This article by Brian Kearl was originally published in the May 1, 2008 edition of Taxation Law @ Gowlings.

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