In Copthorne, the Supreme Court of Canada (“SCC”) addressed anticipatory tax planning under the general-anti avoidance rule (“GAAR”). In this case, an additional step was added to a transaction that prevented paid-up capital (“PUC”) from being eliminated. A year later, this planning allowed for a tax-free return of capital, in the form of a share redemption, in an amount that exceeded the amount of tax-paid capital originally invested. (...)

type Implications Of Copthorne On Tax Planning (en anglais)