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:

Assumptive Closing

A sales technique where the salesperson assumes that the deal has already been made and talks about the next steps, encouraging the customer to agree.

Alternative-Choice

A technique in decision making or sales that narrows options to two possibilities, pushing for a commitment.

Flexible Goggles

Eyewear designed with adaptable and bendable materials, commonly used for protective purposes in sports or industrial settings.

Assumptive Close

A closing technique where the salesperson assumes that the prospect has already decided to buy and moves forward with the next steps as if the decision has been made.