The Golden Rule Is to Be Applied When

question 2

Multiple Choice

The golden rule is to be applied when:

• A)reading the legal text we are able to give words and phrases their ordinary and natural meanings.
• B)interpreting the legal text literally would lead to a result that is absurd or inconsistent with the rest of the document.
• C)interpreting the legal text literally would be inconsistent with the purpose or object underlying the text.
• D)it is necessary to ascertain the mischief behind the text.

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Definitions:

CRA

Stands for the Canada Revenue Agency, which is responsible for administering tax laws for the Canadian government and for various provinces and territories.

Tax Purposes

Pertains to considerations or activities related to the calculation and payment of taxes to regulatory authorities.

Business Purposes

Business purposes refer to the intentions or objectives for which a company or an organization is established and operated, such as profit generation, market expansion, or product development.

Leveraged Lease

A financial lease where the lessor borrows a substantial fraction of the cost of the leased asset.