Specific Anti-Avoidance Rules

Specific Anti-Avoidance Rules - Tax authorities are more...

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Specifc Anti-Avoidance Rules * 2 general types oF fnancial transactions o Those in which the parties have a close relations, such as a parent and child or two corporations owned by members oF the same Family. These taxpayers, who are defned in the Income Tax Act, are said to be not at arm's length o Those in which the parties are completely independent oF each other. These taxpayers are at arm's-length
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Unformatted text preview: * Tax authorities are more concerned with transactions between taxpayers who are closely associated (not in arm's-length) because these oFten are not motivated by normal market Forces * Transactions between arm's length or opposing parties usually re±ect economic realities, and so the structure oF such transactions is usually consistent with their substance...
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