Smith v. The Queen, 87 DTC 5355, [1987] 2 CTC 138 (FCTD) -- summary under Subsection 104(2)

Under a shareholder's agreement containing a right of first refusal, it was agreed that the shares held by the taxpayer would be sold in equal proportions to his three sons for $1.00. The shares of the taxpayer were not held in trust. "While the agreement may have reflected something of a common intent that the shares would pass to the sons in the event of the plaintiff's death, this did not clearly bespeak an intention to transfer or vest the beneficial ownership of those shares in the three sons." Furthermore, the taxpayer "acted at all times as though he were the beneficial owner of the shares."