E.S.G. Holdings Ltd. v. The Queen, 76 DTC 6158, [1976] CTC 295 (FCA) -- summary under Agency

By services, 28 November, 2015

The income tax consequences to a corporation of carrying on business through an agent (a management company) were identical to those of carrying it on through employees, so that the taxpayer's activities qualified as an active business. The Court stated (at p. 6159):

[T]here is [no] material difference in principle, in so far as the carrying on of an active business by a corporation is concerned, between carrying it on through the agency of officers or servants of the corporation and carrying it on through the agency of an independent contractor.

Note
foll'd in Weaver at para. 23
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consequences of carrying on business through agent and employees were the same
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