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.