Two days ago, the Tax Court released the latest decision of Chief Justice Bowman on the general anti-avoidance rule (the GAAR). The case, Lipson v. The Queen, 2006 TCC 148, does not appear to be on-line yet.
The case considers a somewhat convoluted plan to make deductible interest payable in respect of a mortgage on a home as per Singleton v. The Queen, 2001 SCC 61. Chief Justice Bowman decided that the scheme “constitute[d] an abuse or misuse as contemplated by section 245, thereby justifying the assessing treatment accorded by the Minister of National Revenue”.
