The assets of a Canadian-controlled private corporation ("Gestion") consisted of the shares of two companies, the first of which ("2321") was leasing a building for use in the active business of the second corporation ("3104"). In finding that 3104 was related to 2321, Tardif T.C.J. noted that all the issued and outstanding shares of 2321 and 3104 were held equally by Gestion and an individual and, after indicating that the definition of related person in s. 256(1.2) codified the rule in Buckerfield's as to what constituted a group, Tardif T.C.J. found that the two corporations were related.
As 2321 qualified as a small business corporation, Gestion itself qualified as a small business corporation, so that a loss realized by the taxpayer on an advance to Gestion qualified as a business investment loss.