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NEW In-House Counsel | Insurance | Intellectual Property | Immigration | Natural Resources | Real Estate | Tax

Offshore motivations

Thursday, March 16, 2017 @ 8:00 PM | By Jennifer Leve

The recent Tax Court of Canada decision, Gerbro Holdings Company v. Canada 2016 TCC 173, is the first judgment to consider the offshore investment fund (OIF) rules in a situation involving a Canadian taxpayer’s investment in hedge funds that are located in low-tax jurisdictions.

The decision is of interest since it lends clarity to the application of the OIF rules, and in particular, to what constitutes a “main purpose,” as compared to an “ancillary purpose” when determining a taxpayer’s motive in obtaining a tax benefit....