The taxpayers each owned 25% of the shares of a Canadian-controlled private corporation ("SRP") that headleased reserve land from an Indian band and subleased lots to members of a retirement community, who had purchased manufactured homes from SRP for occupation on their respective lots. Before going on to find that the business of SRP was a specified investment business irrespective of its level of activity, Sharlow, J.A. stated (at para. 23):
Justice Beaubier noted that, by December 10, 1998, the obligations of SRP under the subleases were the responsibility of Equitex Management, which was retained as the agent of SRP to manage the retirement community on SRP’s behalf. It is not clear whether he intended that observation to be a reason for rejecting the Weavers’ argument. In my view, that would not be a sound basis for concluding that the business of SRP was not an active business. An active business is no less active merely because it is carried on by an agent: E.S.G. Holdings… .