Opco’s shares are held as to 40%, 40% and 20% by Holdco A, Holdco B and Holdco C, which are wholly owned by three individual shareholders (A, B and C), who deal with each other at arm’s length. “None of the shareholders controls Opco in any manner whatsoever.” Opco disposes of a condo to B's child for proceeds equal to half of its fair market value. CRA noted:
[W]here…the benefit conferred by Opco on B's child [was not] a benefit which Holdco B indirectly conferred on B or B’s child…pursuant to paragraph 15(1.4)(c), the value of the benefit conferred by Opco on child B would be deemed to be a benefit conferred on Holdco B by Opco. Subsection 15(1) would therefore apply to include the value of the benefit in the income of Holdco B.
On the other hand, if the benefit had been indirectly conferred by Holdco B on B or B’s child, subsection 246(1) could apply to include in B's income the value of that benefit. ...
[W]e generally consider that a corporate shareholder indirectly conferred a benefit on a person where the corporate shareholder had an influence on the company that directly conferred the benefit.