110 (1) In this section, “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 in good faith primarily for purposes other than to obtain the tax benefit, or (b) that is part of a series of transactions which would result, directly or indirectly, in a tax benefit but for this section, unless the transaction may reasonably be considered to have been undertaken or arranged in good faith primarily for purposes other than to obtain the tax benefit; (“opération d’évitement”) “Ontario tax benefit” means the tax benefit under this Act; (“avantage fiscal de l’Ontario”) “tax benefit” means a reduction, avoidance or deferral of tax or other amount payable under this Act, the Income Tax Act, the Corporations Tax Act or an Act of a province of Canada that imposes a tax similar to a tax imposed under this Act or the Federal Act or an increase in a refund of tax or other amount under this Act or under any of those Acts and includes, (a) a reduction, avoidance or deferral of tax or other amount that would be payable under this Act or under any of those Acts but for a tax treaty, and (b) an increase in a refund of tax or other amount under this Act or under any of those Acts as a result of a tax treaty; (“avantage fiscal”) “tax consequences” means, (a) in the case of a corporation, (i) the amount of the corporation’s income, taxable income, Ontario taxable income or taxable income earned in Canada, (ii) the amount for the purposes of Division C of Part III of the corporation’s net income, net loss, adjusted net income, adjusted net loss or eligible losses for a taxation year, (iii) the amount for the purposes of Division E of Part III of the corporation’s taxable capital, adjusted taxable paid-up capital or taxable capital employed in Canada, or (iv) any amount, other than an amount referred to in subclause (i), (ii) or (iii), that is payable by or refundable to the corporation under this Act or that is relevant for the purposes of determining another amount referred to in this clause, or (b) in the case of an individual, (i) the amount of the individual’s income earned in Ontario or income earned outside Ontario, as defined in subsection 3 (1), (ii) the amount of the individual’s income, taxable income or taxable income earned in Canada, or (iii) the amount of tax or other amount payable by or refundable to the individual under this Act, or any other amount that is relevant for the purposes of computing another amount under this clause; (“attribut fiscal”) “transaction” includes an arrangement or event. (“opération”)  2007, c. 11, Sched. A, s. 110 (1). Application (2) This section applies despite any other provision of this Act that does not expressly state that it applies despite this section.  2007, c. 11, Sched. A, s. 110 (2). Determination of tax consequences (3) If a transaction is an avoidance transaction, the tax consequences under this Act to a person shall be determined in a manner that is reasonable in the circumstances in order to deny the Ontario tax benefit that would otherwise result directly or indirectly from the transaction, or from a series of transactions that includes the transaction.  2007, c. 11, Sched. A, s. 110 (3). Application of subs. (3) (4) Subsection (3) applies to a transaction if it is reasonable to consider that, (a) the transaction would, if this Act were read without reference to this section, result directly or indirectly in a misuse of the provisions of one or more of, (i) this Act, the Income Tax Act or the Corporations Tax Act, (ii) the regulations made under this Act, the Income Tax Act or the Corporations Tax Act, (iii) a tax treaty, or (iv) any Act or regulation of any jurisdiction that is relevant in computing tax or any other amount payable by or refundable to a person under this Act or in determining any amount that is relevant for the purposes of that computation; or (b) the transaction would result directly or indirectly in an abuse having regard to those provisions, other than this section, read as a whole.  2007, c. 11, Sched. A, s. 110 (4). Nature of determination (5) Without restricting the generality of subsection (3) and despite any other Act or regulation of any jurisdiction, in any determination under subsection (3) of the tax consequences of a transaction to a person, (a) any deduction, exemption or exclusion in computing an amount referred to in clause (a) or (b) of the definition of “tax consequences” in subsection (1) may be allowed or disallowed in whole or in part; (b) any deduction, exemption or exclusion referred to in clause (a) and any income or loss or other amount used in the determination of any amount payable or refundable under this Act may be allocated to any person; (c) the nature of any payment or other amount may be recharacterized; and (d) the tax effects that would otherwise result from the application of provisions of this Act may be ignored.  2007, c. 11, Sched. A, s. 110 (5). Application of subs. (5) (6) Subsection (5) applies to any benefit provided under a tax treaty that applies for the purposes of this Act despite the following: 1. A provision of the tax treaty. 2. A provision of an Act of Canada that gives the force of law to the tax treaty and relates to the application of the tax treaty.  2007, c. 11, Sched. A, s. 110 (6). Federal amount deemed to be adjusted for purposes of this Act (7) Despite any other provision of this Act, if an amount under this Act is adjusted under this section by reason of a determination under subsection (3) of the tax consequences of a transaction to a person and the amount would have been, but for that adjustment, an amount determined under the Federal Act, the amount determined under the Federal Act is deemed to have been adjusted to the same extent for the purposes of this Act.  2007, c. 11, Sched. A, s. 110 (7). Consequential adjustments (8) If a notice of assessment involving the application of subsection (3) with respect to a transaction has been sent to a person, or a notice of determination under subsection 112 (5) has been sent to the person with respect to the transaction, any other person is entitled, within 180 days after the day of mailing of the notice, to request in writing that the Ontario Minister make an assessment applying subsection (3), or make a determination under subsection 112 (6) with respect to the transaction.  2007, c. 11, Sched. A, s. 110 (8). Duty of Ontario Minister (9) On receipt of a request from a person under subsection (8), the Ontario Minister shall, with all due dispatch, consider the request and, despite subsection 152 (4) of the Federal Act, as it applies for the purposes of this Act, assess, reassess, make an additional assessment or make a determination pursuant to subsection 112 (6) with respect to that person, but an assessment or determination may be made under this subsection only to the extent that it may reasonably be regarded as relating to the transaction referred to in subsection (8).  2007, c. 11, Sched. A, s. 110 (9). Exception (10) 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 or through a notice of determination under subsection 112 (5) or (6) involving the application of this section.  2007, c. 11, Sched. A, s. 110 (10).