Soucy - Court of Quebec finds that a double gift was not an avoidance transaction

A direct gift of a vehicle to the taxpayer by her ex-husband would have been subject to Quebec sales tax as they were now unrelated persons. From this perspective, QST was avoided as a result of the vehicle being gifted by her ex-husband to her daughter, and then by her daughter to her – both of them, related-person transfers. In finding that these were not avoidance transactions for Quebec GAAR purposes, Poirier JCQ accepted the taxpayer’s testimony that the transactions had to happen this way in order for her to get the vehicle – her ex was only prepared to give the vehicle to her daughter.

He also stated that "utilizing the exemptions provided by the Act cannot constitute an abuse within the meaning of the Act."

Neal Armstrong. Summary of Soucy v. Agence du revenu du Québec, 2018 QCCQ 4845 under ETA s. 274(3).