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GENERAL ANTI-AVOIDANCE RULE
The Supreme Court considers the GAAR
In much-anticipated hearings that took place on March 8, 2005, two appeals dealing with the application of the general anti-avoidance rule ("GAAR") were finally argued before the Supreme Court of Canada: Kaulius et al. v. The Queen and The Queen v. Canada Trustco Mortgage Company. Edward Rowe and David Spiro examine the arguments put forth by the parties in the March 8 hearings. In Kaulius, the taxpayers submitted that there was not a sufficiently "clear and unambiguous" policy with respect to the transfer of losses between arm's-length parties to ground a GAAR reassessment. In Canada Trustco, the Crown submitted that the transactions in question constituted "classic tax avoidance" and that the "economic reality" of such transactions should be considered in determining whether they constituted a "misuse" of a provision or an "abuse" having regard to the provisions of the Income Tax Act read as a whole.
EXECUTIVE COMPENSATION
Stock Options Revisited
Gregory New reviews important tax and accounting developments in the treatment of stock options. Interestingly, the decision in Alcatel v. R (treating stock option benefits as expenditures for SR&ED tax credit purposes) could potentially apply in respect of the 10% investment tax credit for "pre-production mining expenditures." The author also describes Canadian and U.S. accounting rules in respect of stock options.
CORPORATIONS
Alberta Unlimited Liability Corporations
Doug Richardson and Wanda Rumball discuss certain long-awaited amendments to the Business Corporations Act (Alberta), which include the new Alberta unlimited liability corporation. The authors also examine differences with the well-known "NSULC" in Nova Scotia. The amendments are of particular interest to the resource sector since a number of recent acquisitions in the sector have been accomplished with structures that use an unlimited liability company as a domestic finance company.
also in this issue:
Focus on Commercial Litigation. A summary of recent articles published in the Federated Press journal devoted to corporate liability under criminal, regulatory and other statute law. |
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Contributors to
this issue
From
Resource Sector Taxation
Gregory New
PricewaterhoursCoopers
LLP
Doug Richardson
Wanda Rumball
Blake, Cassels &
Graydon LLP
From
Tax Litigation
Edward C. Rowe
David E. Spiro
Blake, Cassels &
Graydon LLP
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