indirectly

30 October 2002 Internal T.I. 2002-0134077 F - ATTRIBUTION DES GAINS EN CAPITAL -- summary under Subsection 74.2(1)

Two individuals transferred the shares they held of a particular company to their respective holding companies which, in turn, each disposed of a portion of those shares to the individuals’ respective spouses in consideration for non-interest-bearing notes. Following an exchange of such shares for shares of another class, and an amalgamation of the company, the spouses disposed of the shares of Amalco at a gain. In finding that s. 74.2(1) applied, the Directorate stated:

By services, 23 September, 2018

Canada v. 594710 British Columbia Ltd., 2018 FCA 166 -- summary under Subsection 160(1)

Income account treatment of the profits realized by a condo-project limited partnership was avoided through the corporate partners (the Partnercos) of the partnership paying safe income dividends (out of the realized but unallocated condo profits) to their respective Holdco shareholders through the payment of stock dividends of preferred shares followed by a redemption of those preferred shares – in turn, followed by a sale by the Holdcos of the Partnercos to a public company with substantial resource pools (Nuinsco).

By services, 28 November, 2015

Army & Navy Department Stores Ltd. v. Minister of National Revenue, 53 DTC 1185, [1953] CTC 293, [1953] 2 SCR 496 -- summary under Subparagraph 251(2)(c)(i)

One-half of the shares of the 5,000 shares of the “Western Company” were owned by the “Alberta company,” and the other half were owned by the “Saskatchewan company.” Two brothers owned 60% of the shares of the Alberta company (with the balance held by the husband of their sister) and those two brothers owned 80% of the shares of the Saskatchewan company (with the balance held by the son of one of them).

indirectly