On August 4^th, 2023, the Department of Finance Canada (“Finance”) released draft legislative proposals which included revised proposals to amend the general anti-avoidance rule (the “GAAR”) in section 245 of the Income Tax Act (Canada) (the “ITA”) (the “Revised GAAR Proposals”). The revised proposals follow several GAAR proposed amendments initially introduced in the 2023 Federal Budget (“Budget 2023”) tabled on March 28^th, 2023.

The proposals to amend the GAAR will apply to transactions that occur on or after January 1^st, 2024, except for the amendments to the preamble to the GAAR and related provisions which will come into force on Royal Assent.