Before Opco (whose shares were held by three unrelated individuals, Messrs. A, B and C) was to effect a real-estate spin-off to a new sister corporation, entailing inter alia a transfer of Opco to a new holding company (as to which CRA provided an s. 55(3)(a) ruling), estate freezing transactions were to be implemented (in which Mr. C participated in form). As a result, Trust A (settled by Mr. B and with Mr. and Mrs. A, and Mr. C as trustees) for the benefit of Mr. A’s family, Trust B (settled by Mr. A and with Mr. B, his daughter, and Mr. C as trustees) for the benefit of Mr. B’s family and Mr. C will hold the non-voting Class B common shares of Opco. Preferred shares will be held through holding companies for Mr. A and Mr. B (Newcos A and B), and by Mr. C himself.
CRA was not asked to rule on s. 75(2).