Brown v. Canada, 2003 DTC 5298, 2003 FCA 192 (FCA) -- summary under Paragraph 251(1)(c)

By services, 28 November, 2015

At the time a partnership, of which the taxpayer subsequently became a partner, negotiated an agreement for the acquisition of software, the same individual was both the sole director and shareholder of the general partner corporation, and counsel for the vendor. In finding that the taxpayer's income should be determined on the basis that the partnership in acquiring the software was not dealing at arm's length with the vendor, Rothstein J.A. stated (at para. 23):

"Whether or not the partnership was at arm's length with the vendor is a question to be decided on the basis of the relationship of the directing minds of each at the time the transaction was structured. Once that determination is made, it applies to all the partners, even those, like the appellant, who subsequently joined the partnership."

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time of structuring is the relevant time
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