Ho v. The Queen, 2010 DTC 1214, 2010 TCC 325 -- summary under Subparagraph 152(4)(b)(iii)

Webb, J. found that the Minister was not entitled to reassess the taxpayer on the basis that s. 75(2) imputed income of a family trust to the taxpayer with such income of the family trust, in turn, arising under the "fapi" provisions of the Act, given that there was no transaction involving the taxpayer and the non-resident corporation that gave rise to the alleged fapi. Webb, J. quoted, with approval a statement in MNR v. Dufresne, 67 DTC 5105 (Ex. Ct.) that "transaction" meant "any act having operative effect in relation to a business or property" and stated (at para. 23) that "'transaction' would not include the operation of certain provisions of the Act that deem income of one person to be the income of the other person".