20 December 2004 External T.I. 2004-0092871E5 F - Arm's Length: de facto control -- summary under Subsection 256(5.1)

In 1999-0008405 F, CRA applied IT-64R4 in generally commenting that s. 84.1 could apply where an individual who sold the individual’s shares of a corporation to another corporation in consideration for a demand loan the value of which equaled 80% of the total value of such purchaser's assets. Has Silicon Graphic affected this position? CRA indicated that following the subsequent decisions in Mimetix Pharmaceuticals, 9044-2807 and Lenester Sales “there was no need to change its position on de facto control and that it was of the opinion that the criteria contained in … IT-64R4 [paras. 21, 23] remained valid for determining whether a person or group of persons has de facto control of a corporation.”