The tax shelter rules, which were originally enacted to target marketed tax shelter schemes, may capture legitimate business undertakings, especially those conducted through a partnership. The rules should therefore be carefully considered whenever a property (such as an interest in a partnership) is expected within the first few years after acquisition to provide the acquiror with tax deductions and prescribed benefits that equal or exceed the property's cost. Published in Volume 22, Number 5 of
Canadian Tax Highlights by the Canadian Tax Foundation.
Please note that this publication presents an overview of notable legal trends and related updates. It is intended for informational purposes and not as a replacement for detailed legal advice. If you need guidance tailored to your specific circumstances, please contact one of the authors to explore how we can help you navigate your legal needs.
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