Update gaar-examples-3.html

compliance/gaar-examples-3.html

@@ -76,7 +76,7 @@ <h2 class="h3">On this page</h2>
 <li><a href="#h_2-3">Creation of an artificial capital loss</a></li>
 <li><a href="#h_2-4">Discretionary trusts and the application of the 21-year deemed disposition rule</a></li>
 		</li></ul> 
-<li><a href="#h_2-5">GAAR, statute-barred years and penalties</a> </li>
+<li><a href="#h_3">GAAR, statute-barred years and penalties</a> </li>
 
 
   </ul>
@@ -266,7 +266,7 @@ <h4>Transactions &ndash; Scenario 2</h4>
  </details>
 
 
-<h3 id="h_2-5">GAAR, statute-barred years and penalties </h3>
+<h2 id="h_3">GAAR, statute-barred years and penalties </h2>
 <p>Pursuant to subparagraph 152(4)(a)(i), a misrepresentation must be "attributable to neglect, carelessness or willful default," or it must involve the commission of fraud in order for the CRA to reassess a particular tax return beyond the normal reassessment period.  For a penalty to apply under ss. 163(2), a taxpayer must have knowingly, or under circumstances amounting to gross negligence, made a false statement or an omission in their return. </p>
 <p>The scope for their application is not limited to particular provisions of the Act, but applies for the purpose of the Act as a whole, including section 245 of the Act.  Therefore, the CRA could consider the application of either of the provisions above to tax avoidance arrangements involving the application of the GAAR. </p>
 <p>Whether the ss. 163(2) penalty applies in a given case or whether there has been a misrepresentation or fraud in accordance with subparagraph 152(4)(a)(i), is a question of fact that can be determined only after a review of all the facts and circumstances. For example, a penalty may be considered in a situation where the taxpayer has disregarded the jurisprudence confirming the application of the GAAR in circumstances similar to the transaction(s) undertaken by or with the taxpayer. </p>