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Which of the following would be the best example of a transaction that the General Anti-Avoidance Rule (GAAR) could apply to?

Which of the following would be the best example of a transaction that the General Anti-Avoidance Rule (GAAR) could apply to?

A Sally contributes $3,000 to her RRSP account and then claims the amount as an RRSP deduction to reduce her taxes payable.


B A sole shareholder claims personal expenses through his small business corporation.

C An individual uses her non-capital losses carry forward to reduce her 2017 taxes payable.

D A mother gives her adult son, a full time university student, $20,000 to invest in his name. He then sells the investment, recognizing a capital gain, and returns the after tax proceeds to her which are higher than if she had invested herself because he is in a lower tax bracket.

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D. A mother gives her adult son, a full time university student, $20,000 to invest in... View the full answer

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