A corporation of which an engineer was an employee and shareholder and which provided project operations management services in the industrial sector received an offer from a Montreal engineering corporation to organize and participate in all stages of the commissioning of a new plant that that the corporation (or its US division) is building abroad. In order to fulfill the contract, the corporation would send the engineer as an employee for a number of weeks to the site, with some periods of return home for rest during that period. CRA stated:
[E]ven if it were reasonable to consider you to be an employee of XXXXXXXXXX engineering corporation, but for the existence of your corporation, subsection 122.3(1.1) would not apply any more than if it were not reasonable to consider you to be an employee of a person or partnership other than your corporation.