Which of the following statements regarding GAAR is true?
A)The purpose of GAAR is to catch tax evaders.
B)Individuals who organize their affairs in order to pay as little tax as possible will automatically be subject to GAAR.
C)The Canada Revenue Agency states that "A transaction will not be an avoidance transaction if the taxpayer establishes that it is undertaken primarily for bona fide business, investment or family purposes."
D)When an avoidance transaction takes place, the anti-avoidance rule is automatically applied in all circumstances.

Question

Quizplus · Accepted Answer

The Canada Revenue Agency specifies that a transaction is not considered an avoidance transaction if it is primarily for legitimate business, investment, or family purposes.

Which of the Following Statements Regarding GAAR Is True