Finance indicates that the pending GAAR changes will be in the nature of a tune-up

In brief oral comments on the GAAR consultation paper, Shawn Porter indicated that Finance thinks that the GAAR is working reasonably well, but could do with a tune-up.

He noted that the paper stated the government’s intention to add an explicit economic substance rule to the GAAR in accordance with the PMO mandate letter to the Minister. Although the judicially developed analytical framework was reasonably sound, there are some cases that may benefit from a further statutory “nudge” with regard to economic substance, but Finance did not wish to undo 30-plus years of experience by all in working with the GAAR, and the precedents established in a significant volume of decided cases.

29 November 2022 CTF Conference - Finance Update