The taxpayer entered into a contract with Sun Life to provide sales services as an independent contractor. The taxpayer then agreed with a company owned by him and his family ("Lakeside") that Lakeside would receive all proceeds under the contract with Sun Life. Lakeside provided all equipment and supplies for the conduct of the sales business and paid salary to the taxpayer.
Before finding that none of the income earned under the contract with Sun Life was income of the taxpayer notwithstanding a clause in the contract with Sun Life indicating that no assignment of the benefits of the contract would be made by the taxpayer, and after noting judicial authorities that "'an attempted assignment of contractual rights in breach of a contractual prohibition is ineffective to transfer such contractual rights'", Bell TCJ indicated (at p. 217) that "the issue in this appeal has nothing to do with a contractual dispute with a third party".