Neuman and Beyond: Income Splitting, Tax Avoidance, and Statutory Interpretation in the Supreme Court of Canada

Authors

David G. Duff, Allard School of Law at the University of British ColumbiaFollow

Faculty Author Type

Current Faculty [David Duff]

Published In

Canadian Business Law Journal

Document Type

Article

Publication Date

2008

Subjects

Income Splitting; Tax Avoidance; Statutory Interpretation; Canada

Abstract

This comment examines the Supreme Court of Canada decision in Neuman, considering the grounds of the decision itself as well as its implications for income splitting, tax avoidance, and the manner in which the Supreme Court of Canada interprets the Income Tax Act. Part II reviews the facts of the case, its judicial history, and the decision reached by the Supreme Court of Canada. Part ill evaluates this decision in light of the text of s. 56(2), the purpose of this provision, and the practical consequences of the court's interpretation. Part IV considers the implications of the decision and subsequent legislative amendments for income splitting, tax avoidance, and statutory interpretation. Part V offers brief conclusions.

Citation Details

David G Duff, "Neuman and Beyond: Income Splitting, Tax Avoidance, and Statutory Interpretation in the Supreme Court of Canada" (2008) 32:3 Can Bus LJ 345.