Birchcliff - Tax Court finds that when CRA has made a GAAR assessment, the Minister's pleadings must disclose the legislative policy that was considered to be abused

Campbell J. found that the object, spirit and purpose of the Act's provisions which the Minister determined, in making a GAAR assessment, had been abused by the taxpayer, was a "material fact" that must be disclosed in the Minister's Reply.  As noted by Steve Suarez:

While it is open to the Crown during the course of the litigation to allege the existence of a different object, spirit or purpose than the one relied on in making the reassessment, that variation in its reasoning will now be transparent and the courts may question the strength of the CRA's arguments in situations in which it has changed the policy it says has been contravened.

Neal Armstrong.  See summary of Birchcliff Energy Ltd. v. The Queen, TCC Docket 2012-1087(IT) G (neutral citation pending) under s. 245(4).