09/03/22

Canadian Supreme Court Endorses Treaty Shopping Arrangement

Our previous article[i] was written in anticipation of the ruling from the Supreme Court of Canada (the SCC) in Canada v. Alta Energy Luxembourg S.A.R.L.[ii] (Alta Energy). Six of the nine SCC justices in Alta Energy held that the statutory general anti-avoidance rule (GAAR) did not deny treaty benefits under the Canada-Luxembourg Tax Treaty (Treaty). This milestone decision promises to be a leading authority in treaty shopping jurisprudence both within Canada and internationally. Further, the SCC’s decision provides important commentary on both the GAAR and the interpretation of tax treaties.

Share this article