In St-Pierre c. La Reine, 2007 CCI 90, the taxpayer transferred shares of a corporation to his management company, which he controlled. The management company transferred the shares to the taxpayer’s spouse. The spouse later disposed of shares substituted for the transferred shares, and she realized a capital gain as a result. The Minister reassessed the husband on the basis that the gain should be attributed to him under subsection 74.2(1) of the Income Tax Act. The Tax Court agreed on the basis that the husband had caused the management company to transfer shares to his spouse and that, therefore, he had transferred property to her “indirectly…by any means whatever” as required by the subsection.
