The taxpayer, which sold its shares of a company ("Glegg Industries") at the same price as that received by the minority shareholders of Glegg Industries, argued that a considerable portion of the sales proceeds received by it were properly allocable to a non-competition agreement given by its shareholder (Mr. Glegg). In rejecting this submission, C. Miller, J. noted that the taxpayer was not a party to the non compete, and that the only thing it had to sell was its shares.
He also noted that s. 68 can be relied upon to allocate between two types of property, so that there is no requirement that the taxpayer have provided, in part, services.