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Supreme Court of Canada (SCC) dealt with the GAAR issue and set guidelines for all future GAAR cases If you re thinking of any aggressive tax planning, it s worthwhile knowing the ground rules to avoid a CRA reassessment

On October 19, 2005, the SCC handed down decisions in two landmark GAAR cases: Canada Trustco Mortgage Co v Canada (2005 SCC 54) and Mathew v Canada (2005 SCC 55) The difference between these cases is that, in the Mathew case, the Minister was able to show that allowing the tax bene t obtained by the taxpayer in his situation would be inconsistent with the object, spirit, or purpose of the provisions of the Act that the taxpayer relied upon In the Canada Trustco case, the Minister failed to show this

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chemistry, the recognition of a new group of elements in the periodic table, the actinides. According to the periodic table of the early 20th century, one expected americium and curium to be eka-iridium and eka-platinum, that is, to have chemical properties similar to iridium and platinum. In 1944, Seaborg conceived the idea that all the known elements heavier than actinium (Z 89) had been misplaced in the periodic table. He postulated that the elements heavier than actinium might form a second series similar to the lanthanide elements (Fig. 15.1), called the actinide series. This series would end in element 103 (Lr) and, analogous to the lanthanides, would show a common oxidation state of 3. Once this redox property was understood, the use of a proper chemical procedure led quickly to the identi cation of an isotope of a new element. Thus, a new a-emitting nuclide, now known to be 242 Cm (half-life 162.9 d), was identi ed 96 by Seaborg, Albert Ghiorso, and Ralph James in the summer of 1944 in the bombardment of 239 Pu with 32-MeV helium ions: 94

The SCC cases were important because they established three general principles, or tests, that must be met for you to be caught under GAAR Here they are: 1 There must be a tax bene t resulting from a transaction (or part of a series of transactions) No tax bene t to you Then GAAR shouldn t apply 2 The transaction must be an avoidance transaction in the sense that it was not arranged primarily for bona de purposes, other than to obtain a tax bene t This doesn t mean that there must necessarily be a business purpose for the transaction(s), but there should be some purpose beyond gaining a tax bene t for the transaction to avoid the label avoidance transaction 3 The avoidance transaction must be abusive That is, allowing the tax bene t would be inconsistent with the object, spirit, or purpose of the provisions of the Act relied upon by the taxpayer Now, the burden is on the taxpayer to refute the first two principles in each case The onus, however, is on the CRA to establish the third principle that the avoidance transaction was abusive By the way, if it s unclear that a transaction was abusive, the bene t of the doubt is supposed to go to the taxpayer

The key command for job control is the jobs command. The jobs command allows you to view the current jobs being handled by the shell:

What does all of this mean for you Unless it s clear, based on the known purpose and wording of the speci c provisions in the Act, that a tax strategy is abusive, you should be given the benefit of the doubt Also, while a transaction may be tax-motivated, this isn t enough to apply GAAR and deny you the tax bene t The transaction must also be abusive Lord Tomlin would be pleased He expressed it best in the well-known case, IRC v Duke of Westminster (1936), when he said: Every man is entitled, if he can, to order his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be The bottom line is this: If you are going to engage in any type of aggressive tax planning, be sure to work with a tax professional to structure your affairs so that you avoid meeting the three tests I ve talked about here

This process can be carried out effectively by using the pipeline shown in Figure 2.18. As mentioned earlier, in such a pipelined scheme the first instruction requires five clocks to complete its execution. However, the remaining instructions are completed at a rate

TO MAKE A LONG STORY SHORT:

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