Marissa Halil and Manu Kakkar, “Section 84.1 and Factual Non-Arm’s-Length Considered” Tax for the Owner-Manager 17:1 (January 2017) summarizes Poulin v R, 2016 TCC 154, in which the Court held that conflict between parties and hard bargaining does not mean that they deal at arm’s length with respect to a particular transaction. Rather, the questions are whether the parties had separate interests in the transaction and whether they dealt with each other on ordinary commercial terms in respect of it.
