Law360 Canada ( November 6, 2018, 8:52 AM EST) -- Appeal by the Crown from a decision of the Tax Court that vacated an assessment issued to the respondent. The respondent was assessed $1,801,406 pursuant to the general anti-avoidance rule (“GAAR”) on the basis it had engaged in abusive tax avoidance. The Crown assessed the respondent as a non-arm’s length transferee for joint and several liability of a tax liability owing by its former subsidiary, 671705 British Columbia Ltd. 671705 was a partner in a partnership that allocated its income to Nuinsco, which had become a partner one day before the end of the partnership’s fiscal period. The Minister’s assessment of 671705 encompassed two taxation years and ignored the deemed year end. The Tax Court found GAAR did not apply to 671705 because even though there was a tax benefit and an avoidance transaction to avoid income inclusion from its participation in a partnership, there was no abuse. The Court found GAAR did not apply to the respondent because there was no tax benefit as no property was transferred from 671705 to the respondent at less than fair market value....