The Resource A reasoned response to the CRA's views on the scope and interpretation of paragraph 95(6)(b)

A reasoned response to the CRA's views on the scope and interpretation of paragraph 95(6)(b)

Label
A reasoned response to the CRA's views on the scope and interpretation of paragraph 95(6)(b)
Title
A reasoned response to the CRA's views on the scope and interpretation of paragraph 95(6)(b)
Creator
Subject
Language
eng
Summary
Subsection 95(6) is a specific anti-avoidance rule found in the foreign affiliate provisions of the Canadian Income Tax Act. Under the subsection, a share acquisition in a foreign corporation that would otherwise qualify as a foreign affiliate of a Canadian taxpayer may be ignored in certain circumstances. In recent years, the Canada Revenue Agency (CRA) has asserted a role for subsection 95(6), and in particular for paragraph 95(6)(b), that would elevate it to the status of an avoidance rule of general application, much like the general anti-avoidance rule (GAAR) in subsection 245(2); the CRA could then apply the rule on a discretionary basis where the share acquisition, or the series of transactions of which the share acquisition is a part, results in what the CRA considers to be abusive tax avoidance. In this article, the authors examine the history of subsection 95(6) and the evolution of the CRA's positions. They apply a textual, contextual, and purposive analysis to the provision with the objective of demonstrating that the CRA' s interpretation is not supportable on any such reading
Citation source
In: Canadian tax journal = Revue fiscale canadienne. - Toronto. - Vol. 54 (2006),
http://library.link/vocab/creatorName
  • Johnson, E.J
  • Lille, G.C
  • Wilson, J.R
Language note
English
http://library.link/vocab/subjectName
  • anti-avoidance
  • affiliated companies
Label
A reasoned response to the CRA's views on the scope and interpretation of paragraph 95(6)(b)
Instantiates
Publication
Label
A reasoned response to the CRA's views on the scope and interpretation of paragraph 95(6)(b)
Publication

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