The taxpayer was found to have transferred the right to receive trailer fee income to a family corporation, but to have continued to earn the trailer fee income himself given that he continued to personally incur virtually all of the expenses associated with the earning of the trailer fees, received no remuneration for performing the services on behalf of the corporation, and continued after the incorporation to be viewed by the broker dealer as the person that would be accountable to provide the services. (Campbell J. previously accepted evidence that the provision of services was necessary to the earning of the trailer fees.)
Campbell J. also found that the comments in the Winter case that s. 56(2) could only apply respecting a benefit that was not directly taxable in the hands of the transferee, did not apply to s. 56(4).