Bernstein v. MNR, 74 DTC 6041, [1974] CTC 4 (FCTD), aff'd 77 DTC 5187, [1977] CTC 328 (FCA) -- summary under Dividend

The sale by a corporation to its shareholders (Bernstein and Kamichik) of shares of a subsidiary worth $100,000 for a sale price of $200, was not a dividend. "There was no meeting of directors at which any dividend was declared and the elaborate scheme which was adopted to eventually get cash from the company's surplus into the hands of Messrs. Bernstein and Kamichik could hardly be considered as the payment of a dividend."