12.1 (1) In this section, “tax benefit” means a reduction, an avoidance, a deferral or a cancellation of tax or other amount payable under this Act or an increase in a refund or rebate of tax or other amount under this Act; (“avantage fiscal”) “tax consequences” to a person means the amount of tax, rebate or other amount payable by, or refundable to, the person under this Act, or any other amount that is relevant to the purposes of computing that amount; (“attribut fiscal”) “transaction” includes an arrangement or event. (“opération”) 2014, c. 7, Sched. 16, s. 1. Application of section (2) This section applies to the following transactions: 1. A transaction completed after May 1, 2014,
including a transaction that is part of a series of transactions that includes one or more transactions completed on or before May 1, 2014. 2. A transaction completed on or before May 1, 2014, if the transaction is part of a series of transactions that includes one or more transactions completed after May 1, 2014. 2014, c. 7, Sched. 16, s. 1. General anti-avoidance rule (3) If a transaction is an avoidance transaction, the tax consequences to a person shall be determined as is reasonable in the circumstances in order to deny a tax benefit that, but for this section, would result, directly or indirectly, from that transaction or from a series of transactions that includes that transaction. 2014, c. 7, Sched. 16, s. 1. Avoidance transaction (4) An avoidance transaction means any transaction, (a) that, but for this section, would result, directly or indirectly, in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit; or (b) that is part of a series of transactions, which series, but for this section, would result, directly or indirectly, in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit. 2014, c. 7, Sched. 16, s. 1. Provision not applicable (5) Subsection (3) does not apply in respect of a transaction where it may reasonably be considered that the transaction would not result, directly or indirectly, in a misuse of the provisions of this Act or the regulations or in an abuse having regard to the provisions of this Act or the regulations, other than this section, read as a whole. 2014, c. 7, Sched. 16, s. 1. Determination of tax consequences (6) Without restricting the generality of subsection (3), in any determination under subsection (3) of the tax consequences of a transaction to a person, (a) any exemption, refund or rebate may be allowed or disallowed, in whole or in part; (b) any such exemption, refund, rebate or a part thereof may be allocated to any person; (c) the value of the consideration may be determined and may be apportioned among parts of the land or lands being conveyed; (d) the proportional share of the acquisition of or increase in an interest of any kind in land of any person may be determined; (e) any tax payable under section 3 that is deferred or no longer owing may be deemed to be owing as of the thirtieth day after the date of the disposition of a beneficial interest in land; (f) the nature of any transaction, payment or other amount may be recharacterized; and (g) the tax effects that would otherwise result from the application of other provisions of this Act or the regulations may be ignored. 2014, c. 7, Sched. 16, s. 1. Request for adjustments (7) If, with respect to a transaction, a notice of assessment, reassessment or additional assessment under section 12 involving the application of subsection (3) with respect to the transaction has been sent to a person, any person (other than a person to whom such a notice has been sent) is entitled, within 180 days after the day of sending of the notice, to request in writing that the Minister make an assessment, a reassessment or an additional assessment, applying subsection (3) with respect to that transaction. 2014, c. 7, Sched. 16, s. 1. Duties of Minister (8) On receipt of a request by a person under subsection (7), the Minister shall consider the request and, despite subsection 12 (4), assess, reassess or make an additional assessment under section 12 with respect to the person, except that an assessment, a reassessment or an additional assessment may be made only to the extent that it may reasonably be regarded as relating to the transaction referred to in subsection (7). 2014, c. 7, Sched. 16, s. 1. Exception (9) Despite any other provision of this Act, the tax consequences to any person following the application of this section shall only be determined through a notice of assessment, reassessment or additional assessment under section 12 involving the application of this section. 2014, c. 7, Sched. 16, s. 1. Series of transactions (10) For the purposes of this section, where there is a reference to a series of transactions, the series shall be deemed to include any related transactions completed in contemplation of the series. 2014, c. 7, Sched. 16, s. 1. Section Amendments with date in force (d/m/y) 2014, c. 7, Sched. 16, s. 1 - 24/07/2014