Minister of National Revenue v. Consolidated Holding Co., 72 DTC 6007, [1972] CTC 18, [1974] SCR 419 -- summary under Paragraph 256(1)(b)

By services, 28 November, 2015

Two individuals (Harold Gavin and Robert Gavin) each owned 50% of the shares of one corporation ("Consolidated") which in turn owned 43.7% of the voting shares of a second corporation ("Martin"). 45.9% of the voting shares of Martin were held by an estate of which the three executors were Harold, Robert and the Montreal Trust Company. Under the terms of the will of the deceased, the shares of Martin could be voted by a majority of the executors. Judson J. stated (p. 6008):

"Here, if one looks at the facts as a whole, one finds that the two Gavins, by combining, controlled the vote of the estate shares. They already controlled the voting of 'Consolidated'. In this case, therefore, both corporations are controlled by the same group of persons, namely, the two Gavins."

Consolidated and Martin accordingly were held to be associated by virtue of s. 39(4)(b) of the pre-1972 Act.

Topics and taglines
Topic
Income Tax Act - s. 256(1)(b)
Tagline
2 individuals controlled having regard to shares held both in their individual and executor capacities
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
337619
Extra import data
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