The taxpayer and its 50% corporate shareholder were found to be subject to the de facto control of the same person (an individual who was the sole shareholder of the 50% shareholder) given that that individual was the sole director and the president of the taxpayer. Lamarre Proulx J. stated (at paras. 38-39):
"The decision-making role belongs to the director of a corporation, and it is the one that is associated with the notion of control in fact of a corporation."
Cornu, dir., Vocabulaire juridique, 2d ed. (Paris: Presses universitaires de France, 1990) defines the word "[control]" in a manner that I find interesting, at p. 207:
[TRANSLATION]
- 3 Dominion over the management of a business or organization; power ensuring the one who has it a dominant influence in the direction of a group, a corporation, etc., or the orientation of its future.