Before going on to find that a Netherlands cooperative was a corporation for ITA purposes, the Directorate stated:
[T]he appropriate approach to classifying an entity for Canadian income tax purposes is to first determine the characteristics of the foreign business association based on the relevant foreign commercial law and entity’s organizational documents, and then compare these characteristics with those of recognized categories of business association under Canadian commercial law in order to classify the foreign business association under one of those categories. This two-step approach is consistent with the approach adopted by the Canadian courts.