• Barbados Spousal Trust Strategy Fails Canadian Trust and GAAR Tests
  • October 7, 2009 | Author: Stephanie A. Wong
  • Law Firm: Borden Ladner Gervais LLP - Toronto Office
  • The Tax Court¿s conclusions on the GAAR, together with the Supreme Court¿s decision in Lipson, should serve as a cautionary warning to taxpayers and their advisors that using the spousal rollover and attribution rules in conjunction with other tax planning to achieve a tax benefit may run afoul of the GAAR. The Court¿s decision in Garron puts into question some arrangements commonly used by trust planners in Canada, and may also have implications for how offshore holding companies are held and administered in light of the Court¿s use of the central management and control test.