Federal Court of Appeal deems loss monetization abusive, finds de jure control irrelevant

By Karunjit Singh (December 1, 2023, 2:10 PM EST) -- The Federal Court of Appeal has held that a series of transactions undertaken to monetize an insolvent corporation’s non-capital losses was subject to the general anti-avoidance rule (GAAR) as they frustrated the object, spirit and purpose of s. 111(5) of the Income Tax Act (ITA)....