Tax Memo: Important Supreme Court Ruling on GAAR — Highlights

On January 8, 2008, the Supreme Court of Canada released its decision in Jordan B. Lipson, Earl Lipson v. The Queen¹. In a split decision, a majority ruled that the General Anti-Avoidance Rule (GAAR) in section 245 of the Income Tax Act applied to a series of transactions that (unless the GAAR applied) allow a taxpayer to deduct interest on a loan used, indirectly, to purchase a home.

This Tax Memo provides an overview of the case.

Tax Memo: Important Supreme Court Ruling on GAAR — Highlights (76 KB) Download the case highlights.

¹Wilson & Partners LLP is a law firm affiliated with PricewaterhouseCoopers LLP in Canada whose practice is restricted to tax matters.