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SCC Decision: January 8, 2009

Lipson v. Canada, 2009 SCC 1
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(Tax / Income Tax / GAAR)
L and his wife bought a family residence, then entered a series of transactions involving a mortgage and a loan to buy shares in a family corporation.  Mortgage funds were used to repay the share loan, and L deducted mortgage interest payments and reported share taxable dividends over the following years.  The Minister of National Revenue disallowed the deductions.  The Court held that under the general anti-avoidance rule ("GAAR"), the deductions should be disallowed.
Majority/Dissent/Dissent: 4/2/1

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