Kruger Wayagamack Inc. v. The Queen, 2015 DTC 1112 [at at 667], 2015 TCC 90, aff'd 2016 FCA 192 -- summary under Subparagraph 251(2)(b)(i)

By services, 28 November, 2015

Kruger Inc. was the 51% shareholder of the taxpayer and was entitled under the unanimous shareholders agreement between it and the other shareholder (SGF) to appoint three of the five directors. However, Jorré J found that such a wide range of decisions were specified in the USA to require unanimous director (or shareholder) approval – to the point that he characterized Kruger as having control of only operating, and not strategic, decisions – that Kruger did not have de jure control.

See summary under s. 256(1)(a).

Topics and taglines
Topic
Income Tax Act - s. 251(2)(b)(i)
Tagline
de jure control requires strategic control, not merely operational control
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Node
Drupal 7 entity ID
337570
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