Survivance v. Canada, 2007 DTC 5096, 2006 FCA 129 -- summary under Subsection 256(9)

The taxpayer, a public corporation, which disposed of its shares of a subsidiary to a private corporation, was eligible to claim a business investment loss because, under subsection 256(9), the subject corporation was deemed to be controlled by the purchaser as of the beginning of the same day. Noël J.A. (at para. 74) noted that the scheme of the Act established that subsection 256(9) stated a rule of general application and, although subsection 256(9) did not refer to the relinquishing of control "control cannot be acquired without there being concomitantly an abandonment of control".