This enactment amends the Income Tax Act to deem certain avoidance transactions to be a misuse of provisions providing for tax benefits.
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Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
R.S., c. 1 (5th Supp.)
1 Section 245 of the Income Tax Act is amended by adding the following after subsection (4):
(4.1) An avoidance transaction that would result, directly or indirectly, in a tax benefit, the amount of which exceeds the amount of the actual or anticipated financial benefit of the transaction to the taxpayer, is deemed, in the absence of evidence to the contrary, to be a misuse of the provisions of any one or more of the enactments referred to in subparagraphs (4)(a)(i) to (v).
Published under authority of the Speaker of the House of Commons