All the voting shares of the taxpayer were owned by a Canadian corporation all of whose voting shares were owned by a U.S. corporation. All the shares of the U.S. corporation were owned by two Canadian-resident corporations.
In finding that the taxpayer was a Canadian-controlled private corporation, MacGuigan J.A. stated (at p. 5345):
"Control has about it a character of exclusivity, of finality, and cannot allow for two masters simultaneously. In the case at bar control rests, ultimately, in the hands of Canadian residents. We do not see an interpretation in terms of ultimate control as an addition of the word 'ultimately' to what would otherwise be a rule of plain meaning, but rather as emphasizing that the concept of control has necessarily latent within it the notion of ultimate control."