S.T.B. Holdings Ltd. v. Canada, 2002 DTC 7450, 2002 FCA 386 -- summary under Subsection 245(7)

The Court rejected a submission that s. 245(7) required that, in order for GAAR to be applied, the reassessment notice must state on its face that GAAR is being utilized and GAAR must be the primary assessing position. The Tax Court judge had correctly interpreted the word "following" to mean "after". S.245(7) referred to a prior GAAR application to a taxpayer resulting in a subsequent determination of the tax consequences for another, i.e., s. 245(7) was intended to apply only to third parties seeking a tax relief - a conclusion that was supported by the French version and the sandwiching of s. 245(7) between two subsections geared toward third-party adjustments.