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This is a taxation question:

MC Question 1 (Screenshot).png
Which of the following statements about GAAR (General Anti—Avoidance Rule] is
NOT ACCURATE? O GAAR focuses on anti—avoidance provisions. This is all transactions undertaken
by the taxpayer, unless it can be proven that the transaction had a bona fide
purpose. 0 GAAR requires that the taxpayer received a tax benefit. This could be a
reduction, avoidance, or deferral of tax, or an increase in the refund. 0 If GMR is applicable, the result is that the tax benefit which arose as a result of
the avoidance transaction will be denied. 0 Tax planning is not GAAR. Tax planning is when the taxpayer uses the ITA
sections as intended. i.e. the ITA provision being used was intended to be used
as a tax planning tool. An example of this would be the RRSP tax deferral.

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Subject: Accounting, Business

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