August 16, 2022
Canada's Department of Finance releases general anti-avoidance rule consultation and paper
Following through on its commitment first announced in the 2020 fall economic statement and reiterated in the 2021 and 2022 federal budgets, the Department of Finance (Finance) on August 9, commenced its general anti-avoidance rule (GAAR) public consultation focused on modernizing the GAAR in the Income Tax Act (the Act). Finance is seeking views and accepting written representations from Canadians on its released paper, Modernizing and Strengthening the General Anti-Avoidance Rule, which addresses different proposed approaches to further prevent aggressive tax planning. Stakeholders and members of the public have until September 30, 2022 to provide feedback, which will be considered alongside the analysis of Finance officials in making informed policy decisions having regard to their overall objective of improving fairness and integrity in the tax system as initially stated in their 2020 fall economic statement.
A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.
Full text of Tax Alert