- Parties: The appellant was 3295940 Canada Inc. The respondent was His Majesty the King.

- Subject Matter: The Minister of National Revenue reassessed the appellant under the General Anti-Avoidance Rule (GAAR) in s. 245 of the Income Tax Act, 1985. The reassessment applied the GAAR to add a $31.5-million capital gain to the appellant’s income in taxation year 2005. The Minister said that the appellant and Gestion Micsau Inc. carried out a series of avoidance transactions that resulted in a tax benefit, specifically a $31.5-million reduction in the capital gain that the appellant would have realized if it had directly sold its shares in Holdings to Novartis Pharmaceuticals Canada Inc.

- Ruling: The appeal court ruled in the appellant’s favour and allowed the appeal with costs in the appeal court and in the court below. The appeal court set aside the Tax Court’s judgment . The appeal court rendered the judgment that the Tax Court should have rendered by allowing the appellant’s appeal and by referring the reassessment back to the Minister. There was no abuse of the Income Tax Act, given the true nature and overall result of the series of transactions, the appeal court held. The appellant did not realize an additional $31.5-million capital gain, the appeal court found.

- Date: The hearing was set on Nov. 15, 2023. The court released its decision on Mar. 7, 2024.

- Venue: This was a federal case before the Federal Court of Appeal.

- Amount: No financial award was specified.