The questioner provided a simplification of the facts in Consolidated Holding, namely, one corporation is controlled by A and B, as trustees of a trust and another corporation is controlled by A and B in their own right (not as trustees), and asked whether the two corporations would be related.
CRA first commented that where s. 104(1) applies, the control of the particular corporation by a trust may also result in the trustee being related to the particular corporation and that in 2022-0928191C6, it indicated that it is the trustees who have the legal ownership of the shares, and who have the right to vote with those shares, and therefore control the corporation. CRA then indicated that, assuming that A and B under the terms of the trust control one corporation, and A and B as a group control the other corporation, the two corporations would be related to each other pursuant to s. 251(2)(c)(i) (two corporations controlled by the same group of persons).