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An analysis by Borden Ladner Gervais
Last August, the Canadian government released a discussion paper identifying several issues the government has with the general anti-avoidance rule (GAAR) in s. 245 of the Income Tax Act and suggesting various possible legislative amendments in order to expand its scope.
The March 2023 budget included proposed amendments to GAAR, aiming to introduce a preamble, change the avoidance transaction standard, introduce an economic substance rule, impose a penalty, and extend the reassessment period in certain cases. Stakeholders were given until May 31, 2023, to provide feedback on the proposed amendments.
However, the government’s decision to include the proposals in the budget surprised many in the tax community, who were expecting to wait for a pending Supreme Court decision before making any changes. Steve Suarez, a partner in our Canadian firm, Borden Ladner Gervais, analyses this decision.
Read the full article here.
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