Because of s. 55(5)(e), two corporations each of which was controlled by an individual who was the brother-in-law of the other controlling shareholder (i.e., they were the respective husbands of two sisters) were not related for purposes of applying s. 55(2). Marceau J.A. stated that:
"There is nothing in the text to suggest that the fiction or assumption set out in that 'deeming provision' - to the effect that where applicable for the specific purpose identified, siblings are not to be treated as such, i.e., are to be deemed not to be related to one another but on the contrary to be dealing at arm's length - should apply only at the level of and with regard siblings themselves and have no effect on relationships that stem directly and exclusively from that sibling relationship, such as brothers-and sisters-in-law."