In order to defeat a claim of a bank, a tax debtor ("Garneau") deposited $305,000 with the taxpayer (whose shareholder was his friend) to hold on his behalf and disburse as directed. Noël JA found that s. 1452 of the Civil Code entitled a third party (here, the Minister) to avail itself of the "apparent contract" (i.e., Garneau's apparent divestment of the funds to the taxpayer) notwithstanding that this was a "simulation" under s. 1451, so that s. 160 could be applied as if there had been a property transfer. Furthermore, the taxpayer and Garneau were not dealing at arm's length as they were acting in concert: see summary under s. 251(1)(c). S. 160 applied.
Respecting a hypothetical similar transaction in a common law province, Noël JA noted (at para. 53):
The rule to be gleaned from [Livingston]...is that the transfer of legal title in a sum of money may give rise to a transfer for the purposes of subsection 160(1) where it is intended to conceal the fact that the tax debtor is the beneficial owner of this sum and thwart the tax authorities' collection efforts.