An adult child received a distribution of 10% of the common shares of a CCPC from a family trust, of which his father was one of the two trustees, then he granted his father a power of attorney (POA) regarding those common shares, pursuant to which his father could exercise all rights attached to those shares except as expressly excepted. CRA stated:
Although Father may exercise the rights attached to the shares, it is our understanding that the POA would not involve a transfer of the legal or beneficial ownership of such shares to Father. Therefore, as a matter of law, and for the purposes of paragraph (b) of the definition of “excluded shares” in subsection 120.4(1), Adult Child would own the shares.