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)Individuals who organize their affairs in order to pay as little tax as possible will automatically be subject to GAAR.
• C)The 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)When an avoidance transaction takes place, the anti-avoidance rule is automatically applied in all circumstances.

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Definitions:

Diagnostic Labels

Terms or phrases used in healthcare and psychology to identify and classify diseases, disorders, or conditions based on symptomatology and/or underlying causes.

Schizophrenia

A chronic mental disorder characterized by delusions, hallucinations, disorganized speech, and impaired cognitive function.

Biasing Power

Refers to the ability to influence someone's judgment or decisions in a particular direction.

Diagnostic Labels

terms or categories used by healthcare professionals to classify and describe specific psychological or medical disorders.