The objects of a Quebec-based corporation ("PTAQ") focused on advancing education through the production and distribution of educational television programming. Agreements with a Vermont public television station ("VPT") provided that VPT would produce non-commercial television as agent for and at the direction of PTAQ and engage in fund-raising for PTAQ.
Scott JA upheld the Minister's revocation of PTAQ's registration as a charitable organization. In finding that PTAQ was not carrying on charitable activities thorough VPT, as its agent, and after stating (at para.44) that "the control over the agent's activities is a key element to establish that it maintained direction and control over its resources" (para. 44), Scott JA stated (at para. 46) that evidence did "not indicate any form of control over the choice of programs offered to PTAQ by its agent" and instead revealed "that VPT presented ‘predetermined packages' to PTAQ every year." Furthermore, PTAQ failed to establish "that it exercised monthly financial monitoring and control of expenditures… that it funded " (para. 48), and "the fundraising documents… indicated that VPT was conducting the fundraising activities on its own behalf" (para. 50). PTAQ instead was a "conduit" for VPT, i.e., "only used to issue receipts for donations received by VPT from Canadian donors" (para. 55).