Morley v. The Queen, 2004 DTC 2604, 2004 TCC 280, briefly aff'd 2006 DTC 6351, 2006 FCA 171 -- summary under Paragraph 251(1)(c)

An acquisition of software by a tax-shelter partnership was found not be an arm's length transaction in light of the very non-commercial nature of the terms of the notes that were issued to the vendor and the fact that the purchase price substantially exceeded the fair market value of the acquired software. Although Archambault J. agreed with counsel for the taxpayer that the existence of a discrepancy between the fair market value and the price paid should not in and of itself be conclusive as to the existence of a non-arm's length relationship, he indicated that such a discrepancy is a factor to be taken into account.