{"id":6623,"date":"2023-05-26T10:32:17","date_gmt":"2023-05-26T17:32:17","guid":{"rendered":"https:\/\/www.thor.ca\/?post_type=tax_alert&#038;p=6623"},"modified":"2025-02-21T12:19:28","modified_gmt":"2025-02-21T20:19:28","slug":"scc-dismisses-taxpayers-appeal-in-deans-knight-2023-scc-16","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2023\/05\/scc-dismisses-taxpayers-appeal-in-deans-knight-2023-scc-16\/","title":{"rendered":"SCC dismisses taxpayer\u2019s appeal in Deans Knight (2023 SCC 16)"},"content":{"rendered":"<p>Today, by a 7:1 majority, the Supreme Court of Canada <a href=\"https:\/\/decisions.scc-csc.ca\/scc-csc\/scc-csc\/en\/item\/19939\/index.do\">dismissed<\/a> the appeal of Deans Knight Income Corporation (\u201c<strong>Deans Knight<\/strong>\u201d) from a <a href=\"https:\/\/www.thor.ca\/blog\/2021\/10\/federal-court-of-appeal-decision-in-deans-knight-creates-uncertainty-with-new-test-for-loss-utilization\/\">2021 decision<\/a> of the Federal Court of Appeal that upheld the application of the general anti-avoidance rule (the \u201c<strong>GAAR<\/strong>\u201d) in the <em>Income Tax Act<\/em> (Canada). Justice Rowe delivered the reasons for the majority while Justice C\u00f4t\u00e9 dissented. The majority applied the GAAR to find that the transactions undertaken by Deans Knight frustrated the underlying rationale of subsection 111(5) which would have otherwise restricted the taxpayer\u2019s utilization of its historic losses following the relevant series of transactions.<\/p>\n<p>A detailed analysis of the decision will be posted on our blog in the coming days.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today, by a 7:1 majority, the Supreme Court of Canada <a href=\"https:\/\/decisions.scc-csc.ca\/scc-csc\/scc-csc\/en\/item\/19939\/index.do\">dismissed<\/a> the appeal of Deans Knight Income Corporation (\u201c<strong>Deans Knight<\/strong>\u201d) from a <a href=\"https:\/\/www.thor.ca\/blog\/2021\/10\/federal-court-of-appeal-decision-in-deans-knight-creates-uncertainty-with-new-test-for-loss-utilization\/\">2021 decision<\/a> of the Federal Court of Appeal that upheld the application of the general anti-avoidance&hellip;<\/p>\n","protected":false},"author":74,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53],"tags":[],"class_list":["post-6623","post","type-post","status-publish","format-standard","hentry","category-tax-alerts"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/6623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/74"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=6623"}],"version-history":[{"count":1,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/6623\/revisions"}],"predecessor-version":[{"id":7252,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/6623\/revisions\/7252"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=6623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=6623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=6623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}