The March 4, 2010 Federal Budget (the “Budget”) contained proposals to require reporting to the Canada Revenue Agency (“CRA”) of certain types of tax avoidance transactions. Following the Budget announcement, the Department of Finance released details of the proposals on May 7, 2010 and invited interested parties to provide comments on these proposals by July 7, 2010 (the “Proposals”). The Joint Committee on Taxation of The Canadian Bar Association and The Canadian Institute of Chartered Accountants (the “Joint Committee”), among others, prepared a submission to the Department of Finance addressing a number of concerns relating to the Proposals. On August 27, 2010, draft legislation (the “Draft Legislation”) to implement most of the remaining Budget announcements including the Proposals was released for consultation. The explanatory notes to the Draft Legislation were subsequently released on September 10, 2010. On September 27, 2010, the Joint Committee put forward another submission to the Department of Finance regarding the Draft Legislation. A supplementary submission dealing with solicitor-client privilege was also made on September 27, 2010 by the Taxation Law section of the Canadian Bar Association.
This article also includes discussions of:
- Reportable Transactions
- Fee Hallmark
- Confidential Protection Hallmark
- Contractual Protection Hallmark
- Reporting Obligations
- Penalty
- Interaction With the General Anti-Avoidance Rule
- Much Ado About Nothing?
Republished with permission from Federated Press.
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