Tax avoidance in Canada and the future of GAAR

Legal Year in Review

In this article – “Tax avoidance in Canada and the future of GAAR” – we review the federal government’s intention to modernize Canada’s anti-avoidance rules, including the GAAR; the release of the government’s consultation paper that describes potential sweeping changes to the GAAR; the proposal to change the burden of proof in GAAR cases; how the proposed changes would significantly narrow taxpayers' ability to plan commercial transactions in a tax-efficient manner; how the changes would undercut longstanding GAAR case law and undermine the very principles of certainty and predictability that the government seeks to preserve; and expected forthcoming guidance from the Supreme Court of Canada on the interpretation and application of the GAAR.

This article is authored by Pooja Mihailovich and Amanda Heale, both partners, Tax.
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Our Legal Year in Review, published December 7, 2022, provides general information only and does not constitute legal or other professional advice. Specific advice should be sought in connection with your circumstances.
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