Ch. 39 - General Anti-Avoidance Rules

Question 1

Tax Avoidance

Answer 1

tax planning that is against the overall spirit and intent of the law - unacceptable and abusive tax planning

Question 2

Tax Evasion

Answer 2

Deliberately ignoring provisions to reduce taxes

Question 3

Conditions for GAAR

Answer 3

1. A benefit arises as a result of the transaction(s)
2. The transactions(s) is an avoidance transaction(s)
3. The transaction(s) is an abusive tax-avoidance arrangement