Canada v. McLarty, 2008 DTC 6354, 2008 SCC 26, [2008] 2 SCR 79 -- summary under Paragraph 251(1)(c)

By services, 28 November, 2015

In finding that an acquisition of seismic data by the taxpayer, acting through the vendor ("Compton") as his agent, was an arm's length transaction, Rothstein J. stated (at para. 72):

"Had the trial judge found that McLarty had subordinated his entire decision making power to Compton as his agent, his dealings with Compton as vendor would not have been at arm's length. He would not be making an independent decision about the purchase but would have left that completely to Compton. But these are not the facts found or inferences drawn by the trial judge."

Rothstein J. also cited with approval the adoption in Cundill of paragraph 29 of IT-419R2 as a list of factors that bear on whether a relationship is at arm's length.

Topics and taglines
Tagline
decision making not subordinated to the other/ structured arrangement
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
337521
Extra import data
{
"field_legacy_header": "<strong><em><a id=\"McLarty\"></a>The Queen v. McLarty</em></strong>, 2008 DTC 6354, 2008 SCC 26 <strong>[decision making not subordinated to the other/structured arrangement]</strong>",
"field_override_history": false,
"field_sid": "",
"field_topic_category": ""
}