Central Springs Limited v. The Queen, 2010 DTC 1258 [at at 4409], 2010 TCC 543 (Informal Procedure) -- summary under Paragraph 153(1)(a)

The taxpayer and Humbly Enterprises were related corporations. When Humbly was experiencing financial difficulties and was in arrears for source deduction remittances, the taxpayer commenced paying the remuneration of Humbly's employees and took on their services. It was only at that point, Boyle J. found, that the individuals in question became employees of the taxpayer. Therefore, the taxpayer could not be liable for Humbly's source deduction arrears - Boyle J. characterized CRA's contrary position as "inappropriate retroactive collection planning." Absent a sham, the CRA has no right to redetermine a legal employment relationship.