following

The taxpayers acknowledged that capital losses (purportedly generated under schemes similar to Global Equity, 1207192 and Triad Gestco) should be denied under GAAR, but argued (based on s. 245(7)) that as GAAR could not be applied without the intervention of the Minister, interest began to accrue only from the time of the GAAR assessments.

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.