Brown v. The Queen, 2001 DTC 1094 (TCC), aff'd supra 2003 DTC 5298 (FCA) -- summary under Paragraph 251(1)(c)

The purchase by a partnership of software from an American company ("ASC") was found to be a transaction between persons not dealing with each other at arm's length given that the general partner was owned by a solicitor for ASC until shortly before the time of the transaction and thereafter the general partner was controlled by an individual ("Williams") who was heavily involved in the sale and promotion of tax shelter investments with which ASC was involved (and, in fact, memoranda on ASC letterhead were sent by him to the partners). Furthermore, the terms of the promissory note issued by the partnership to ASC were not those that would have been agreed to by an arm's length vendor. Williams was found to have acted in concert with ASC and to have the same interest as ASC in directing the conduct of the partnership.