On May 31, 2023, TEI filed comments with the Canadian Department of Finance regarding a proposal to impose a penalty on taxpayers who violate Canada's general anti-avoidance rule ("GAAR"). TEI commented that a distinct penalty for violations of the GAAR was not necessary given the current structure of the Canadian income tax code. Should the Canadian government implement such a penalty, TEI recommended that the penalty only be imposed in cases where the taxpayer acted with "gross negligence" or a similar level of fault, among other things. TEI's comments were prepared under the aegis of its Canadian Income Tax Committee, whose chair is Steve Saunders. Benjamin R. Shreck, TEI tax counsel, coordinated in the preparation of the Institute's comments.