11 October 1996 APFF Roundtable, 7M12910 - APFF ROUND TABLE -- summary under Subsection 245(4)

Where specific anti-avoidance provisions are not applicable to a transaction or series of transactions that results in tax abuse, the general anti-avoidance provision may be applied even before taking tax conventions into account." The ability in a country to apply general anti-avoidance provision in domestic tax law is recognized by the OECD, and the right to apply the GAAR is implicit in Article 29A, paragraph 7 of the Canada-U.S. Convention.