Copthorne Holdings Ltd v. The Queen, 2007 DTC 1230, 2007 TCC 481, aff'd 2011 SCC 63 -- summary under Subsection 245(7)

The paid-up capital of the taxpayer was found to be higher than was appropriate in light of the object and spirit of the provisions of the Act with the result that redemption proceeds paid by it to a non-resident shareholder were successfully assessed under GAAR as being subject to Part XIII tax. In finding that the amount of the withholding tax was not subject to penalty under s. 227(8)(a), Campbell J. first noted that s. 227(8) established a strict liability rather than absolute liability penalty and further found (at para. 78) that as "there is nothing in the GAAR provisions that would allow a taxpayer to self assess on the basis that GAAR applies," a penalty should not be imposed as a consequence of the successful application of GAAR by the Minister.