28 February 2024 Internal T.I. 2024-1008251I7 - IC 88-2 and new GAAR -- summary under Subsection 245(4)

Regarding the impact of the Bill C-59 GAAR amendments on the GAAR positions in IC 88-2 and IC 88-2 Supplement 1, CRA stated:

The potential application of the amended section 245 is dependent on a full review of all the facts and circumstances of each particular case. Furthermore, the application of the amended section 245 must be in accordance with the object, spirit and purpose of such provision and of the other provisions that are relied upon by the taxpayer as well as, ensure that economic substance receives proper consideration.

That being said, our general view is that the conclusions reached in the examples provided in IC 88-2 and IC 88-2 Supplement 1 should remain the same under the amended section 245.

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