Which of the Following Statements Regarding GAAR Is True

question 2

Multiple Choice

Which of the following statements regarding GAAR is true?

• A)The purpose of GAAR is to catch tax evaders.
• B)When an avoidance transaction takes place, the anti-avoidance rule is automatically applied in all circumstances.
• C)Canada Revenue Agency states that "A transaction will not be an avoidance transaction if the taxpayer establishes that it is undertaken primarily for bona fide business, investment or family purposes."
• D)Individuals who organize their affairs in order to pay as little tax as possible will automatically be subject to GAAR.

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Definitions:

Internal Consistency

A measure of the reliability of a psychological test or assessment, based on the correlation between multiple items or components of the test.

Alternate Form

A variant or different version of something, often used in the context of tests or assessments to reduce the effect of memorization or test practice.

Inter-rater

A measure of agreement among different people rating or assessing the same thing, ensuring consistency in evaluations across different observers.

Test-retest Reliability

The consistency of a psychological test or assessment over time when given to the same individuals.