The taxpayer transferred shares of a corporation ("3101") to a management company controlled by him and the management company disposed of a portion of those transferred shares to the taxpayer's wife approximately a year later. Approximately half a year after that, the taxpayer's wife exchanged her shares of 3101 for shares of another class of 3101, following which 3101 was merged with another corporation and the taxpayer's wife disposed of her shares of the merged company to a purchaser at a capital gain.
Tardif J. found that the taxpayer had transferred "by any means whatever" his shares of 3101 by these transactions to his wife, so that s. 74.2(1) applied to attribute the capital gain realized by her to him.