http://decision.tcc-cci.gc.ca/tcc-cci/decisions/en/item/109134/index.do 
Kruger Wayagamack Inc. v. The Queen (April 14, 2015 – 2015 TCC 90, Jorré J.).
Précis: This is somewhat of an oddball case involving entitlement to refundable SRED credits. The taxpayer was owned as to 51% (through an intermediary corporation) by Kruger Inc. (“Kruger”) and as to 49% by SGF Rexfor Inc. (“SGF”) (a company owned by the Government of Quebec). It was common ground that if the taxpayer was associated with Kruger it was not entitled to the refundable credits. That in turn boiled down to whether Kruger controlled, or was deemed to control, the taxpayer. The Court carefully analysed [163 paragraphs plus extensive quotations from the documentation] the Unanimous Shareholder Agreement sic (USA) between Kruger and SGF and concluded that Kruger did not have de jure or de facto control. Nevertheless Kruger was deemed to control the taxpayer by paragraph 256(1.2)(c) of the
Income Tax Act (Act) since the value of its 51% shareholding was worth more than 50% of the total shareholdings in the taxpayer. As a result the appeal was dismissed with costs.
Decision: This is an extremely fact specific decision dealing with the highly intricate arrangements between Kruger and SGF and will probably have little, if any, precedential value in other situations. The Court reviewed the evidence very meticulously and concluded that Kruger did not have de jure or de facto control of the taxpayer under the provisions of the USA or otherwise. Nevertheless it was caught by paragraph 256(1.2)(c) of the Act:
(c) a corporation shall be deemed to be controlled by another corporation, a person or a group of persons at any time where
(i) shares of the capital stock of the corporation having a fair market value of more than 50% of the fair market value of all the issued and outstanding shares of the capital stock of the corporation, or
(ii) common shares of the capital stock of the corporation having a fair market value of more than 50% of the fair market value of allthe issued and outstanding common shares of the capital stock of the corporation
are owned at that time by the other corporation, the person or the group of persons, as the case may be;
At the end of the day Kruger’s 51% holding logically had to be worth more than 50% of the issued shares of the taxpayer:
[161] Accordingly, there is no reason to depart from the starting point that 51% of the shares with the right to 51% of the dividends and of any distribution of the assets of the corporation are worth more than 50% of the fair market value.
[162] It follows that, pursuant to paragraph 256(1.2)(c) of the Act, Kruger is deemed to control the appellant.
The appeal was dismissed with costs.