Plain meaning
An arrangement or gifting arrangement that meets statutory tax-shelter conditions and is subject to identification and reporting rules.
Also called
tax shelters
Key points
- Tax shelters generally require an identification number before promoters can sell or issue interests.
- An identification number does not mean CRA approves the arrangement.
- Investors may face reassessments, penalties, and interest if claimed benefits are denied.
- Tax-shelter rules are separate from the broader question of whether a transaction works under tax law.
Why it comes up
Tax shelters appear in CRA warnings, litigation, reassessments, and anti-avoidance policy discussions.