In Lyrtech RD Inc. v. The Queen, 2013 TCC 12, the Tax Court of Canada (TCC) held that a public company (Pubco) had de facto control of a Canadian research and development company (R&D Co); as such, the enhanced refundable research and development tax credits were not available to R&D Co because R&D Co was not a Canadian-controlled private corporation (CCPC). R&D Co was owned by a discretionary trust (Trust) the beneficiaries of which were direct and indirect subsidiaries of Pubco (Pubco Subs). The TCC held that although the Trust and not Pubco had de jure (legal) control of R&D Co, Pubco held de facto (factual) control of R&D Co. The latter existed because Pubco held “a dominant economic influence over” R&D Co, such that R&D Co “could not survive or continue its activities” without the support of Pubco (paragraph 32). Accordingly, Pubco controlled R&D Co “directly or indirectly in any manner whatever” (s. 256(5.1) and s. 125(7)). The TCC also addressed the Crown’s alternate argument that the Pubco Subs had contingent de jure control of R&D Co under s. 251(5)(b), as beneficiaries of the Trust. The TCC rejected this argument. The beneficial interest of the Pubco Subs in the Trust was too uncertain or indirect to be a right under s. 251(5)(b) (paragraph 55). Further, if Parliament had intended such a result, it would have clearly expressed this intent – as it did for the associated-corporation rules in s. 256(1.2)(f).