Scandia Plate Ltd. v. The Queen, 83 DTC 5009, [1982] CTC 431 (FCTD) -- summary under Subsection 125(1)

Ownership of the shares of an alleged Canadian-controlled private corporation was not acquired by a Canadian resident from a Swedish company before the date of closing of the written agreement of purchase and sale, rather than on the earlier effective date of that agreement when an alleged oral executory agreement was in place. Accordingly, the requirement that the company have been a Canadian-controlled private corporation "throughout the year" was not met. Cattanach J. stated (at p. 5012): "[W]hen there is a preliminary contract in words which is afterwards reduced into writing, or where there is an executory contract to be carried out by a deed afterwards executed, the rights of the parties are covered in the first case entirely by the writing, and in the second case entirely by the deed." In addition, any evidence that the Swedish company held its shares as a trustee for the Canadian resident until the time of execution would not assist the taxpayer, because the test of control rests on registered ownership, not beneficial ownership, of the shares.