The taxpayer's subsidiary ("Leasing") transferred leasing assets to a partnership between Leasing and two subsidiaries of a third party that was interested in acquiring those assets ("CCM" and "693396") in consideration for a partnership interest, an election was filed under s. 97(2), the taxpayer (the "Bank") acquired the partnership interest of Leasing on a winding-up of Leasing pursuant to s. 88(1) and the Bank sold the partnership interest to 693396 and an affiliate of 693396.
In finding that the gain realized by the Bank on the sale of the partnership interest was a capital gain, McLachlin J. noted (at para. 16) that "none of the circumstances indicate that the Bank's acquisition and subsequent disposition of Leasing's partnership interest was a speculative trading venture".