Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Whether an independent contractor would be included in the term "agent" for purposes of section 253(b).
Position: Question of Fact.
Reasons: We have not been provided with sufficient information to determine whether an independent contractor is acting as an agent for purposes of section 253 of the Act.
2000-003312
XXXXXXXXXX Karen Power, C.A.
(613) 957-8953
Attention: XXXXXXXXXX
December 8, 2000
Dear Sirs:
Re: Section 253 - Meaning of Agent
We are writing in response to your letter of June 20, 2000 wherein you requested our comments on the meaning of the term "agent" as employed in paragraph 253(b) of the Income Tax Act (the "Act"). Specifically, you have enquired whether the term agent would include an independent contractor for purposes of the Act.
The term agent and the concept of agency are not defined in the Act. The determination of whether an independent contractor is an agent for purposes of section 253 of the Act is a question of fact to be resolved on a case by case basis.
Despite the existence of an extensive body of jurisprudence in relation to agency, whether a person is acting as an agent in a particular situation is not always clear. Whether an agency relationship exists between a principal and an independent contractor would necessitate a review of all the relevant facts and circumstances of each particular situation and we have not been provided with sufficient information to enable us to make such a determination.
Yours truly,
for Director
Reorganizations and International Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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