October 11, 2010
Canada's Federal Court of Appeal on September 29th held in Collins & Aikman Products Co. et al. v. The Queen that a plain vanilla corporate reorganization and subsequent distribution of capital to a nonresident shareholder did not trigger the application of the general antiavoidance rule in section 245 of the Income Tax Act (Canada). This is welcome news for tax payers as Canadian courts conintue to wrestle with the scope and application of the GAAR.
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