Husky Energy - Alberta Court of Appeal found that there was no abuse in exploiting the absence of group taxation in Canada

The Alberta general anti-avoidance rule (which was essentially identical to the federal GAAR) was not engaged when Alberta corporations reduced their income by paying interest to a hybrid affiliate (having a British Virgin Islands incorporation but residency in Ontario for Ontario corporate tax purposes) which was effectively exempt from Ontario corporate tax on that interest - but with the affiliate using the non-taxed funds received by it to pay dividends back to Alberta which were eligible for the inter-corporate dividend deduction.  The central thrust of the Court's reasoning appears to be that it is fundamental to the policy of the Alberta (and Canadian) tax system that each corporation is a separate taxpayer, and this "principle of non-consolidation supports the view that abuse of [the interest deduction in] section 20(1)(c) cannot be clearly established based on the tax treatment of a related company in another province."

This suggests that where inter-provincial loss-shifting transactions are not precluded by more specific rules, the provincial GAAR rules also do not prevent the migration of losses to provinces where the losses are more valuable.

Neal Armstrong.  Summary of Husky Energy v. Alberta, 2012 ABCA 231 under s. 245(4).