In Keybrand Foods Inc. v R, 2020 FCA 201, the Court held that economic dependence was a factor to consider in determining whether parties dealt not at arm’s length as a matter of fact. The CRA gave the following as examples of economic dependence:
• all or most of one party’s earned income comes from the other party,
APFF 2021 Conference roundtable Question 7, October 7, 2021, 2021-0900971C6
• the sole customer or supplier of one party will be difficult to replace,
• the activities of the two parties are very integrated,
• one party is involved in the funding of the other party, or
• the terms of contracts between the two parties are different from ones that would exist between two unrelated parties.
