(1)-(3)

Subsection 245(1) - Definitions

Tax Benefit

Cases

Fiducie financière Satoma v. Canada, 2018 CAF 74

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Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) using ss. 75(2) and 112(1) for tax-free dividends to trust thwarted s. 112(1) object to tax earnings when ultimately distributed 298
Tax Topics - Income Tax Act - Section 3 pervasive rule that the same income is not to be taxed in 2 persons’ hands 142
Tax Topics - Statutory Interpretation - Double Taxation (Presumption Against) inclusion of income in more than one taxpayer’s hands is contrary to s. 3 161
Tax Topics - Income Tax Act - Section 112 - Subsection 112(1) abusive to use s. 112(1) so as to avoid ultimate taxation of individuals 168
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) use of s. 75(2) to access s. 112(1) deduction for dividend in fact received by family trust, was abusive 257

Copthorne Holdings Ltd. v. Canada, 2012 DTC 5006 [at 6536], 2011 SCC 63, [2011] 3 S.C.R. 721

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Stare Decisis high threshold for reversing not met 169
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) policy of s. 87(3) is to avoid preservation of PUC on parent and sub amalgamation 356
Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) "in contemplation" could be retrospective 322
Tax Topics - Statutory Interpretation - Expressio Unius est Exclusio Alterius 105

Canada Trustco Mortgage Co., v. The Queen, 2005 DTC 5523, [2005] 2 S.C.R. 601, 2005 SCC 54

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) policy of CCA provisions relied on cost irrespective of risk mitigation 207
Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) "in contemplation" references "because of" or "in relation to" 115
Tax Topics - Statutory Interpretation - Certainty 127
Tax Topics - Statutory Interpretation - Ordinary Meaning primacy to ordinary meaning if unequivocal 90

Canadian Pacific Ltd. v. The Queen, 2000 DTC 2428, [2001] 1 CTC 2190 (TCC)

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See Also

The Bank of Montreal v. The Queen, 2018 TCC 187

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 39 - Subsection 39(2) pre-2011 version of s. 39(2) extended to capital property dispositions as well as capital obligation settlements 678

Fiducie Financière Satoma v. The Queen, 2017 TCC 84, aff'd 2018 CAF 74

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) use of s. 75(2) attribution rule and s. 112(1) DRD to extract surplus to a family trust was abusive 519
Tax Topics - Income Tax Act - Section 75 - Subsection 75(2) s. 75(2) application ousts dividend inclusion to income recipient (in absence of GAAR) 102

Gervais v. The Queen, 2016 TCC 180

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) basis averaging scheme to transfer half of a capital gain to the taxpayer’s wife was an abuse of the attribution rules 413
Tax Topics - Income Tax Act - Section 245 - Subsection 245(3) comparison with outright sale and gift 187

MacDonald v. The Queen, 2012 TCC 123, rev'd 2013 DTC 5091 [at 5982], 2013 FCA 110

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) no abuse in surplus stripping if integration 350
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) 322

Administrative Policy

93 C.M.TC - Q. 11

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Tax Topics - Treaties - Income Tax Conventions - Article 12 63

Transaction

Cases

R. v. Goldstein (1988), 42 C.C.C. (3d) 548 (Ont CA)

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Words and Phrases
same transaction transaction

See Also

MNR v. Granite Bay Timber Co. Ltd., 58 DTC 1066 (Ex Ct), briefly aff'd 59 DTC 1262 (SCC)

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Words and Phrases
transaction
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) the shareholders had a common purpose in determining to wind-up the company 217

Subsection 245(2) - General anti-avoidance provision

Cases

Quinco Financial Inc. v. Canada, 2018 FCA 137

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 161 - Subsection 161(1) interest is added as usual to a GAAR assessment 308
Tax Topics - Income Tax Act - Section 157 - Subsection 157(1) - Paragraph 157(1)(b) GAAR assessment for prior year was payable as at the balance-due date 166

Winter v. The Queen, 90 DTC 6681 (FCA)

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) s. 56(2) applied to taxpayer rather than 15(1) to son-in-law as de minimis shareholder 70
Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) 163

See Also

594710 British Columbia Ltd. v. The Queen, 2016 TCC 288

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 160 - Subsection 160(1) indirect transfer of property to taxpayer did not entail departure from FMV 442
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) GAAR did not apply to the sale to a lossco of partner corps with pending condo sale profit allocations 626
Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) LP profits can be allocated to purchasing partner at year end 266

Quinco Financial Inc v. The Queen, 2016 TCC 190, aff'd 2018 FCA 137

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 161 - Subsection 161(1) interest on GAAR assessment accrues from the day after the balance-due date 203

CIT Financial Ltd. v. The Queen, 2003 DTC 1138, 2003 TCC 544

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C.I.R. (New Zealand) v. Challenge Corporation Ltd., [1986] BTC 442 (PC)

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Administrative Policy

29 November 2016 CTF Roundtable Q. 7, 2016-0672091C6 - GAAR Assessment Process

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Articles

D. Sandler, J. Li, "The Relationship between Domestic Anti-Avoidance Legislation and Tax Treaties", 1997 Canadian Tax Journal, Vol. 45, No. 5, p. 891.

Subsection 245(3) - Avoidance transaction

Cases

Canada v. Spruce Credit Union, 2014 DTC 5079 [at 7044], 2014 FCA 143

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 137.1 - Subsection 137.1(4) - Paragraph 137.1(4)(c) allocations in proportion to shareholdings rather than premiums 283

1207192 Ontario Limited v. Canada, 2012 DTC 5157 [at 7396], 2012 FCA 259, aff'g 2011 DTC 1301 [at 1686], 2011 TCC 383

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) capital loss from value shift did not reflect economic loss; purpose objectively determined 403

Canada Safeway v. Alberta, 2012 DTC 5133 [at 7271], 2012 ABCA 232

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Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) replacing equity with borrowed money to reduce provincial income not abusive 229

Canada v. Mackay, 2008 DTC 6238, 2008 FCA 105

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Canada v. Canadian Pacific Ltd., 2002 DTC 6742, 2002 FCA 98

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) transaction not to be recharacterized to make it an avoidance transaction 262

OSFC Holdings Ltd. v. Canada, 2001 DTC 5471, 2001 FCA 260

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See Also

Loblaw Financial Holdings Inc. v. The Queen, 2018 TCC 182

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 165 - Subsection 165(1.11) requirement met where Crown knew the nature and quantum of the dispute 259
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Foreign Bank CFA qualified as a foreign bank since it was licensed under Barbados law as an international bank 117
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Investment Business - Paragraph (a) Barbados-licensed international bank, which used Loblaw funding to invest responsively to Loblaw considerations, conducted an offside non-arm’s length business 425
Tax Topics - Income Tax Act - Section 95 - Subsection 95(1) - Investment Business - Paragraph (c) employee equivalents was reduced by employee time described in s. 95(2)(b) 284
Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Foreign Exchange short-term debt securities were inventory because they were the raw material for generating swap income 124
Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.01) - Paragraph 152(4.01)(a) - Subparagraph 152(4.01)(a)(ii) GAAR is generally a separate matter rather than being subsumed in the allegedly-misused substantive provision 194
Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) hiring of employees 15-years previously to engage foreign bank exception to investment business definition was not part of same series as renewal of foreign bank licence 216
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) use of Barbados sub to engage in proprietary trading for Canadian parent misused the foreign bank exemption, whose purpose was promoting international competitiveness 322
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(l) purpose of s. 95(2)(l) exception was to permit non-resident subsidiaries of Canadian banks and dealers to compete internationally 184

Custeau v. Agence du revenu du Québec, 2018 QCCQ 5692

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) no abuse where individuals used PUC thrust upon them by an arm’s length investor (through PUC averaging) to subsequently strip surplus 282

Soucy v. Agence du revenu du Québec, 2018 QCCQ 4845

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 274 - Subsection 274(3) double gift was made (avoiding QST) because the property would not have been directly gifted 236

Birchcliff Energy Ltd. v. The Queen, 2017 TCC 234

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Sham ephemeral transactions under a Plan of Arrangement were not a sham 205
Tax Topics - Income Tax Act - Section 251.2 - Subsection 251.2(2) - Paragraph 251.2(2)(a) proxy which accorded no discretion to a class of shareholders did not render them a group 211
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) raising share equity through a lossco immediately before its amalgamation was abusive 268

2763478 Canada Inc. v. The Queen, 2017 CCI 98

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) value-shift transactions were abusive 220

Gervais v. The Queen, 2016 TCC 180

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) basis averaging scheme to transfer half of a capital gain to the taxpayer’s wife was an abuse of the attribution rules 413
Tax Topics - Income Tax Act - Section 245 - Subsection 245(1) - Tax Benefit benefit compared to straight sale and gift 162

Veracity Capital Corporation v. M.N.R., 2015 DTC 5136 [at 6421], 2015 BCSC 2278

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) abuse of inter-provincial income allocation formula “designed to prevent both the over-taxation and the under-taxation of income" 468

Birchcliff Energy Ltd. v. The Queen, 2015 TCC 232, nullified on procedural grounds 2017 FCA 89

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Sham transitory share issuance under plan of arrangement was not a sham 167
Tax Topics - Income Tax Act - Section 111 - Subsection 111(5) - Paragraph 111(5)(a) grant of proxy did not detract from investors acting individually in own interest 223
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) abusive reverse takeover by Lossco through diverted private placement 251

Pièces automobiles Lecavalier Inc. v. The Queen, 2014 DTC 1126 [at 3319], 2013 TCC 310

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Evidence Canadian tax accountant's testimony on US tax consequences accorded little weight 138
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) avoidance of debt forgiveness rules was abusive 247
Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) debt-paydown transactions effected in contemplation of sale transaction were part of same series as the sales transactions 216

Swirsky v. The Queen, 2013 TCC 73, 2013 DTC 1078 [at 431], aff'd 2014 FCA 36

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McClarty Family Trust v. The Queen, 2012 DTC 1123 [at 3122], 2012 TCC 80

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 84 - Subsection 84(3) 320

McMullen v. The Queen, 2007 DTC 286, 2007 TCC 16

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) 194
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) mutual benefit and same advisors insufficient to establish non-arm's length in structured sale transaction 253
Tax Topics - Income Tax Act - Section 84 - Subsection 84(2) 225
Tax Topics - Income Tax Act - Section 84.1 - Subsection 84.1(1) arm's length: negotiation based on self-interest 253

MIL (Investments) S A v. The Queen, 2006 DTC 3307, 2006 TCC 460, aff'd 2007 FCA 236

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Desmarais v. The Queen, 2006 DTC 2376, 2006 TCC 44

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 245 - Subsection 245(4) surplus stripping 229

Overs v. The Queen, 2006 DTC 2192, 2006 TCC 26

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Univar Canada Ltd. v. The Queen, 2005 DTC 1478, 2005 TCC 723

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Brouillette v. The Queen, 2005 DTC 1004, 2005 TCC 203

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 251 - Subsection 251(1) - Paragraph 251(1)(c) same advisors insufficient/adverse re price 191

Geransky v. The Queen, docket 98-2383(IT)G (TCC)

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Husky Oil Ltd. v. The Queen, 99 DTC 308 (TCC)

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Commissioner of Taxation of the Commonwealth of Australia v. Spotless Services Ltd., 71 ALJR 81, 34 ATR 183, 141 ALR 92

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RMM Canadian Enterprises Inc. v. The Queen, 97 DTC 302, [1998] 1 C.T.C. 2300 (TCC)

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Mark Resources Inc. v. The Queen, 93 DTC 1004 (TCC)

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) loss utilization was not income-producing purpose/ gross income test 173

Barclays Mercantile Industrial Finance Ltd. v. Melluish, [1990] BTC 209 (Ch. D.)

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose 130
Tax Topics - Income Tax Act - Section 83 - Subsection 83(2.1) main purpose was to make a profit, not take deduction 254
Tax Topics - Income Tax Regulations - Regulation 1100 - Subsection 1100(17) no "lease" where failure to provide exclusive possession 73

Mallalieu v. Drummond, [1983] BTC 380, [1983] 2 All E.R. 1095 (HL)

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Newton v. Commissioner of Taxation of the Commonwealth of Australia, [1958] A.C. 450 (PC)

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Words and Phrases
purpose

Administrative Policy

23 May 2013 IFA Round Table Q. 4

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2003 Ruling 2003-03924 -

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1996 A.P.F.F. Round Table No. 7M12910 (Item 3.2)

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Articles

Avery Jones, "Nothing Either Good or Bad, but Thinking Makes it So - The Mental Element in Anti-Avoidance Legislation", 1983 British Tax Review, p. 9, 113.