Marshall v. The Queen, 2011 DTC 1353 [at at 1976], 2011 TCC 497 -- summary under Subsection 90(1)

The taxpayer was a shareholder of a Bermudian corporation ("Tyco"), and received shares as part of the same spin-off described in Capancini, where it was concluded Tyco had never owned the shares received by the taxpayer and therefore that they were not dividends in the hands of the taxpayer under s. 12(1)(k) and s. 90(1). However, Capancini had been heard under informal procedure. In the present case the Minister introduced evidence establishing that the two spin-off corporations were incorporated in Bermuda in 2000 as wholly-owned subsidiaries of Tyco. Therefore, the conclusions in Capancini could not be relied on and V.A. Miller found that the shares of the two spin-off corporations were dividends in kind.