There is no need to limit the scope of the exercise to the confines of the Discussion Paper, the March 2023 Proposals and the text of the provision, and nor should we. [...] To the extent proposed changes are said not to be a change of tax policy but are intended to change the current state of the law, the evidence of how they were clearly present in the original tax policy from 1988 must be provided; - provide more specific examples of how the proposed amendments would change the results of a GAAR analysis from the existing rules; and - take the opportunity to addres. [...] The December 1987 Materials characterize the role of the “avoidance transaction” concept as follows: The adoption of a business purpose test, as proposed in the White Paper, is designed to restrict the provisions of the Income Tax Act to real economic transactions and to deny their application to tax- motivated transactions designed to utilize them to obtain benefits not intended in the Act. [...] This is consistent with the conclusions of both the majority and the minority in Alta Energy: [32] The onus rests on the Minister to demonstrate the object, spirit, and purpose of the relevant provisions and to establish that allowing Alta Luxembourg the benefit of the exemption would be a misuse or an abuse of the provisions (Canada Trustco, at para. [...] 245(0.1) included in the March 2023 Proposals describes GAAR as “[s]trik[ing] a balance between taxpayers’ need for certainty in planning their affairs, and the government of Canada’s responsibility to protect the tax base and the fairness of the tax system.” What Is The Issue? The Discussion Paper described the government’s concerns with the role of certainty and fairness with respect to GAAR as.
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- 65
- Published in
- Canada
