Federal Court of Appeal Rules on GAAR Again

In Fiducie financière Satoma c. Canada, 2018 CAF 74, the Federal Court of Appeal ruled on the General Anti-Avoidance Rule (the “GAAR”) again this year (see our previous Alert re: Oxford Properties). In upholding the Tax Court of Canada’s decision, the FCA found that the GAAR applied to a series of transactions that utilized subsections 75(2) and 112(1) of the Income Tax Act to pay tax-free dividends to a family trust.

Prepared by: Josh Kumar

Josh’s practice focuses on tax litigation and dispute resolution with the Canada Revenue Agency and Department of Justice, as well as domestic and international tax planning for individuals, trusts and corporations, including estate planning, reorganizations and business structuring. Josh clerked… more »