Ministic Air Ltd. v. The Queen, 2008 TCC 296 -- summary under Subparagraph 251(2)(b)(i)

The appellant was denied a credit under ETA s. 231(1) in respect of an alleged bad debt, in part, on the basis that 1/3 of the appellant's receivable was owing by a person with which it did not deal at arm's length, namely, the holder ("Garden Hill") of 98% of its shares. In this regard, Bowie J rejected the appellant's submission (at para. 20) that the provisions of ITA s. 251(2) (adopted for ETA purposes by ETA s. 126(2)) "simply raise a rebuttable presumption that the appellant and Garden Hill did not deal at arm's length, and that this presumption is rebutted by the evidence that the appellant's policy was to provide service to Garden Hill and its members at the same commercial rates that it charged to all its other customers."