Harvard International Resources Ltd. v. Provincial Treasurer of Alberta, 93 DTC 5254, [1993] 1 CTC 329 (Alta. Q.B.) -- summary under Paragraph 256(1)(a)

The taxpayer held an undivided 99.328% interest in the 100 outstanding common shares of a corporation ("Holdings") and another corporation ("Energy") held all the other outstanding shares including 150 voting preferred shares. In response to a submission of the provincial Crown that the taxpayer was associated with Holdings for purposes of s. 26.1 of the Alberta Corporate Tax Act (which applied the test in s. 256(1) of the federal Act as it then read) on the basis that under the terms of a shareholders agreement the taxpayer effectively had the right to cause Holdings to redeem the shares held by Energy upon the termination by the taxpayer of an agreement for the provision by Energy of certain management services to a partnership, Hutchinson J. found that such rights of the taxpayer were "not to be found within the confines of Holdings' charter and by-laws where the real test of de jure control must be found" (p. 5265). Accordingly, Holdings was controlled by Energy and not by the taxpayer.