The Decline of the Successful Tax Shelter
This essay reviews the Income Tax Act (Canada) (the “Act”) tax shelter provisions and provides an overview of relevant issues to demonstrate that despite criticisms that the provisions and Canada Revenue Agency (“CRA”) enforcement are overreaching, it has been successful in prohibiting, preventing and reassessing participants in aggressive tax shelter programs. It argues that issues with the broad legislative provisions like potential and inappropriate applicability to legitimate business transactions and CRA overreach are justified given the real and potential harm that abusive tax shelters cause to the tax system and the success in combating them in recent years. In fact, the legislative and enforcement actions have been so successful that in a matter of decades we have seen the rise and fall of the successful tax shelter in Canada.
Download the full paper here: Nick Wright The Decline of the Successful Tax Shelter 160222
This article and the contents herein are for informational purposes only and do not constitute legal advice. Readers are advised to seek legal counsel prior to acting on any matter discussed herein. We take no responsibility for any third-party sites linked, nor is the presence or absence of a link an indication of endorsement of views expressed.