Hickman v. The Queen, 2000 DTC 2584 (TCC) -- summary under Paragraph 251(1)(a)

The taxpayer disposed of shares of a corporation to another corporation (“CSC”) all of whose shares were held by a family trust whose trustees were the taxpayer, her husband and an unrelated individual and whose trust deed provided for decisions by a majority of the trustees. Bowie J found that the taxpayer and her husband were related by marriage and, as two of the three trustees could by majority vote control the decisions of the trust, the taxpayer and her husband were a related group in a position to control CSC, so that the taxpayer was related to CSC pursuant to s. 251(2)(b)(ii). Bowie J also (at para. 10) that while s. 84.1(2)(d) could deem the trust and a beneficiary of the trust or a person related to a beneficiary of the trust not to deal at arm's length, this was not relevant to the question whether the taxpayer dealt at arm's length with CSC.