CRA will not change its GAAR positions in IC 88-2 and the Supplement as a result of the GAAR amendments

Regarding the impact of Bill C-59 on the GAAR positions in IC 88-2 and IC 88-2 Supplement 1, CRA stated:

[T]he application of the amended section 245 must be in accordance with the object, spirit and purpose of such provision and of the other provisions that are relied upon by the taxpayer as well as, ensure that economic substance receives proper consideration.

That being said, our general view is that the conclusions reached in the examples provided in IC 88-2 and IC 88-2 Supplement 1 should remain the same under the amended section 245.

Neal Armstrong. Summary of 28 February 2024 Internal T.I. 2024-1008251I7 under s. 245(4).