Précis: This is an appeal of a decision reported earlier on this site. McGillivray Restaurant Ltd. (the “Company”) was incorporated to operate a Keg restaurant franchise in Winnipeg. The majority shareholder of the Company was Mrs. Howard. Her husband managed the Company. He owned two other Keg franchises and was instrumental in obtaining the Company’s franchise. The Tax Court held that he exercised de facto control of the Company making it associated with corporations owned by him for the purposes of the small business deduction. The Company appealed to the Federal Court of Appeal.
McGillivray Restaurant v. R. - TCC: Associated corporation appeal dismissed - de facto control by spouseREAD MORE »