Lyrtech – Tax Court finds that a discretionary trust was a blocker for de jure control purposes

Favreau J found that the contingent right of each of the beneficiaries of a discretionary trust to receive all the shares of a corporation held by the trustees was too nebulous to qualify as a right to acquire those shares for purposes of s. 251(5)(b).  However, that corporation was controlled de facto by the public corporation which was one of the discretionary beneficiaries, so that for that reason it did not qualify as a CCPC.

Neal Armstrong.  Summaries of Lyrtech v. The Queen, 2013 CCI 12 under ss. 251(5)(b) and 256(5.1).