The taxpayer's director ("Mr. Gitman") and his two sisters inherited equal interests in a number of properties and a business, which they held in a de facto partnership. The partnership's properties and business were managed principally by the taxpayer, which was owned, operated and staffed solely by Mr. Gitman.
In the course of finding that the taxpayer was engaged in a "personal services business" under s. 125(7) and therefore not entitled to a s. 125(1) small business deduction, Bédard J. found that, but for the existence of the taxpayer, Mr. Gitman would have been an officer of the partnership. He stated (at para. 45):
To summarize once again, an "officer" as defined in the Act:
(i) is a position entitling one to a fixed or ascertainable stipend or remuneration;
(ii) denotes a subsisting, permanent, substantive position which has an existence independent of the person who fills it;
(iii) does not require the individual to be in the service of some other person;
(iv) is created by statute or some other instrument instead of being created by or dependent upon a contract of service between an employer and the particular holder of the position.