Meager Creek Holdings Ltd. v. The Queen, 98 DTC 2073, [1998] 4 CTC 2090 (TCC) -- summary under Subsection 55(2)

Two Canadian corporations owned by the taxpayer paid significant dividends to the taxpayer shortly before the February 1990 federal Budget on the advice of their accountant who feared the introduction of a tax on intercorporate dividends. Six months later, discussions were held with respect to a potential sale of the corporations, and a sale of one-third of the shares occurred a few months later. In finding that the February 1990 dividends were not part of a series of transactions that included the sale, O'Connor TCJ. stated (at p. 2078) that he could not accept the Crown's submission "that any possible or future sale can suffice to bring subsection 55(2) into play".