Canada v. Perfect Fry Company Ltd., 2008 DTC 6472, 2008 FCA 218 -- summary under Canadian-Controlled Private Corporation

The taxpayer, a Canadian-resident corporation, was wholly owned by a Canadian public corporation ("Perfect Fry") which, in turn, was controlled by a group of Canadian-resident individuals who acted in concert. In finding that the taxpayer was a Canadian-controlled private corporation, notwithstanding paragraph (b) of the definition, Sharlow J.A. stated (at para. 7) that the Court agreed with the Tax Court Judge that paragraph (b) applied "only in situations where a majority of the voting shares of a corporation are held by non-residents or public corporations but no person or group of persons has de jure control".