Peter Cedar Products Ltd. v. The Queen, 2009 DTC 1314, 2009 TCC 463 -- summary under Personal Services Business

The principal salesmen and purchasing agents for a brokerage corporation whose business was transacting in cedar shakes and shingles established a partnership of which corporations of which they were specified shareholders were members, in order to continue carrying on these purchase and selling functions. In finding that the corporations did not carry on personal services businesses, Webb, J. noted that the individuals (through their corporations) were given significant latitude and independence with respect to the performance of the services and that the manner in which the partnership was compensated (a share of adjusted gross profits of the brokerage corporation) meant that the partnership had an opportunity for profit and the possibility of incurring losses. The fact that the individuals continued as directors of the brokerage corporation and therefore were employees, was not relevant to the question whether their corporations carried on personal services business in respect of the services provided by the partnership.