Event Calendar
GAAR and a terminal loss
The Queen v Landrus, 2009 FCA 113
By Jennifer Smith, Ernst & Young, Ottawa
The Federal Court of Appeal (FCA) has upheld the Tax Court of Canada's (TCC) decision that the general
anti-avoidance rule (GAAR) did not apply to a series of transactions whereby a terminal loss was
triggered on the sale of assets by two limited partnerships to a new limited partnership that
was owned directly or indirectly by the same parties. This case is of particular interest because
of Tax Court Judge Paris's finding that the stop-loss provisions in the Income Tax Act (the Act)
do not show a clear and unambiguous policy to deny a loss resulting from a sale of property to
a related party. In fact, he expressed the view that the so-called "stop-loss rules," because of
their specificity, are indicative of exceptions to a general policy of allowing losses on all
dispositions. This particular finding was not challenged by the Crown, which appealed to the FCA on other grounds.
>> more - download complete article
Get read... get seen!
Have your ideas and insights showcased to the hundreds of business and financial professionals who visit these pages weekly! CLICK HERE for more information.
Email your submissions for consideration to: webcommunities@cica.ca
All submissions will be reviewed by CICA.
