Krumm v Canada, 2021 FCA 78, is significant because it appears to take the tax shelter rules one step further than many professionals expected. It reflects a broad interpretation of the definition of “tax shelter” in which both publicly marketed and private transactions can be caught by the definition. It also states that it is not necessary that an explicit tax deduction be mentioned for the “statements or representations” to come within the meaning of the statutory provision.
Potter and Martin “Krumm v. Canada: Scope of “Tax Shelter” Broadened” 21:4 Tax for the Owner-Manager (October 2021)
