Intro

Question 1

Basics (what section under)?

Answer 1

Section 150, everyone must file a tax return subject to sanctions under 162(1)

Question 2

Statutory Interpretation

Answer 2

Strict - TP must be clearly and strictly within the language of the statute to be taxed or receive deduction

Modern - Interpret according to purpose of section and entire act
Stubart & Trustco (purposive, contextual approach)

Question 3

Evasion (Section, case law, definition)

Answer 3

Section 238 & 239
Branch & Hummel - deliberate attempt to evade the law, mens rea, deceit
Consequences are criminal in nature

Question 4

Avoidance (common techniques)

Answer 4

Splitting income
Shifting loss
Shifting income
Shelter in tax haven
Convert capital to current

Question 5

GAAR (section, definition, cases)

Answer 5

Section 245 (1-4)
1. Tax benefit arises from transaction or series of transactions.
2. Is it an avoidance transaction (primarily for bona fide purpose only to obtain tax benefit).
3. Misuse or abusive tax avoidance.

Trustco - demonstrates GAAR test
Matthews - Gov has to prove abuse/misuse
Lipsen - abusive where whole purpose of provision was to stop what was attempted