Carreau v. The Queen, 2008 DTC 3106, 2006 TCC 20 -- summary under Personal Services Business

A corporation ("9043") of which an individual was the sole shareholder, officer and employee, and which was retained by a contractor of Hydro Quebec ("Sodéfi") to provide the services of the individual as a computer programmer to Hydro Quebec, was found to be carrying on a personal services business on the basis that, but for the existence of 9043, the individual would have provided services to Hydro Quebec as a subcontractor of Sodéfi and given that there was a relationship of subordination between the individual and Hydro Quebec that was sufficient to establish that under the Civil Code of Quebec the individual would have been viewed as an employee of Hydro Quebec. Although Hydro Quebec could exert little control over the way in which the individual conducted the work, given his level of skills and expertise, he nonetheless was subordinate on the basis of his mandatory presence at assigned places of work in accordance with a scheduled established by Hydro Quebec (in order that he could communicate with other Hydro employees) and in light of the imposition of rules of conduct on him (i.e., providing advance notice of any absences because of illness or taking leave).