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14 June 2010 Internal T.I. 2010-0366611I7 F - Determination of CCPC Status -- summary under Paragraph (b)

At issue was whether a start-up Canadian private corporation engaged in SR&ED was a Canadian-controlled private corporation (“CCPC”). Shareholder1, Shareholder2 and Shareholder3, which were controlled by X (a non-resident of Canada), held less than 41% of the (Class A) voting shares of the Corporation, having a nominal economic value; and resident Canadian investors together with the trust (the “Trust) referred to below, held the balance of the Class A shares.

By services, 28 November, 2015

Buckerfield's Ltd. v. MNR, 64 D.T.C 5301, [1964] CTC 504 (Ex Ct) -- summary under Paragraph 256(1)(b)

Two companies that were vigorous competitors (Pioneer and Federal) each owned one-half of the shares of two other companies (Buckerfield's and Green Valley). In finding that Buckerfield's and Green Valley were associated corporations pursuant to s. 39(4)(b) of the pre-1972 Act by virtue of their control by the same group of persons, Jackett P. stated (at p. 5303):

By services, 28 November, 2015

Plomberie J.C. Langlois Inc. c. La Reine, 2006 DTC 2997, 2004 TCC 734, aff'd supra. -- summary under Subsection 256(5.1)

The taxpayer and its 50% corporate shareholder were found to be subject to the de facto control of the same person (an individual who was the sole shareholder of the 50% shareholder) given that that individual was the sole director and the president of the taxpayer. Lamarre Proulx J. stated (at paras. 38-39):

"The decision-making role belongs to the director of a corporation, and it is the one that is associated with the notion of control in fact of a corporation."

By services, 28 November, 2015

Hudson's Investment Co. (London) Ltd. v. MNR, 68 DTC 83 (TAB) -- summary under Paragraph 251(5)(b)

An individual (Shapiro) was the shareholder of all the shares of Richard Shapiro Limited ("RSL") and of one-half of the common shares of the taxpayer. Most of the balance of the shares of the taxpayer were held by the Canada Trust Company under a voting trust agreement pursuant to which the common shares were held for the benefit of nieces and nephews of Shapiro and their father was designated as the voting trustee.

By services, 28 November, 2015

Scandia Plate Ltd. v. The Queen, 83 DTC 5009, [1982] CTC 431 (FCTD) -- summary under Subsection 125(1)

Ownership of the shares of an alleged Canadian-controlled private corporation was not acquired by a Canadian resident from a Swedish company before the date of closing of the written agreement of purchase and sale, rather than on the earlier effective date of that agreement when an alleged oral executory agreement was in place. Accordingly, the requirement that the company have been a Canadian-controlled private corporation "throughout the year" was not met. Cattanach J. stated (at p.

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