Corner Brook Pulp and Paper Limited (Formerly Deer Lake Power Company Limited) v. The Queen, 2006 DTC 2329, 2006 TCC 70 -- summary under Paragraph 80(2)(g)

In determining the fair market value of shares issues by a subsidiary ("Deerlake Power"), a power company, to its parent in satisfaction of debt owing by Deerlake Power to its parent, it was appropriate to ignore a long term supply contract for the supply of electricity by Deerlake Power to its parent at prices substantially below current electricity prices, given that if the parent had ever wished to sell the shares of Deerlake Power, it first would have arranged for the cancellation of that contract. Accordingly, the debt forgiveness rules did not apply to the settlement of the debt as the shares issued had a fair market value substantially in excess of the debt.