Tax memo: New Supreme Court of Canada ruling on GAAR—Copthorne Holdings Ltd.

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The Supreme Court of Canada (SCC) released its decision on December 16, 2011 in Copthorne Holdings Ltd. v. The Queen. The SCC in a unanimous decision held that the general anti-avoidance rule (GAAR) in section 245 of the Income Tax Act applied to the planning engaged in by the corporate group of which Copthorne Holdings was a part.

This Tax memo provides an overview of the SCC’s decision.