The sole employees of the taxpayer were its sole shareholder ("Martindale") who provided the services of an iron worker and construction manager, and his wife who provided administrative services.
The taxpayer did not carry on a personal services business given that it was remunerated on a cost-plus contract basis that was commonly used by subcontractors carrying on a business like that of Martindale, in previous years and subsequent years it had provided numerous services to enterprises other than the sole enterprise ("SIIL") to which it was providing services in the taxation years in question, Martindale was substantially independent of SIIL, and SIIL exercised no meaningful control over his activities.