Capancini v. The Queen, 2010 DTC 1394 [at at 4569], 2010 TCC 581 (Informal Procedure) -- summary under Dividend

Under a reorganization, the Canadian-resident taxpayer received, in exchange for shares he previously held of Tyco International Ltd. (a non-resident corporation), one share of each of two new corporations and one new share of Tyco International Ltd. The Minister assessed on the basis that the receipt of the shares of the two new corporations represented a dividend to the taxpayer. In finding that the taxpayer had not received a dividend, Bowie, J. noted that the shares of the two new corporations were never owned by Tyco International Ltd. and, instead, were created in the course of a reorganization, and that the distribution of the new shares did not represent a "dividend" in the ordinary meaning of the word, namely, a distribution of a pro rata portion of a company's earnings or profits.