Emory v. The Queen, 2010 DTC 1074 [at at 2901], 2010 TCC 71 -- summary under Subsection 84.1(2)

The taxpayer and another individual ("Chen") owned 27% and 73%, respectively of the shares (being common shares) of a corporation ("Sona"). S. 84.1(1) deemed the taxpayer to receive a dividend when she and Chen transferred their shares of Sona to a corporation ("Ontario Inc.") that was mostly owned by Chen but in which she held 5% of the common shares and for consideration that in her case was paid in cash. This result occurred because the taxpayer was deemed by s. 84.1(2)(b) not to deal at arm's length with Ontario Inc. Woods J. stated (at para. 41) "the fact that the appellant owned a small number of shares in Ontario Inc. has unfortunately resulted in the application of this section."