By Steve Suarez (June 28, 2023, 9:06 AM EDT) -- In a 7-1 decision released on May 26, 2023, the Supreme Court of Canada dismissed the taxpayer’s appeal in Deans Knight Income Corp. v. Canada, [2023] S.C.J. No. 16 (Deans Knight), a case dealing with the general anti-avoidance rule (GAAR) in s. 245 of the Income Tax Act. GAAR permits the Canada Revenue Agency (CRA) to redetermine the tax consequences of a transaction if the taxpayer has undertaken a transaction whose primary purpose is to reduce taxes in a manner that frustrates or defeats the object, spirit and purpose (OSP) or legislative rationale of the relevant provisions of the Act. ...