Ivan Cassell Ltd. – Tax Court of Canada finds that a company with ancillary rental operations providing CEO services out of a home office to a single corporation had a PSB

A corporation (ICL) providing the services of CEO to another corporation (WPNL), that indirectly was owned as to 50% by the CEO and his family, was found to be carrying on a personal services business. The facts that ICL carried on an ancillary rental operation, that the individual was not (as de facto CEO) subject to significant supervision and that he spent a lot of his time working out of his home (and in fact only had a “make-shift space available to him as the need arose” at the WPNL premises), did not tip the balance. It also hurt ICL’s case that it did not even bother to invoice WPNL and that no attempt was made to depart from the typical remuneration package for a CEO (fixed monthly remuneration plus a year-end bonus).

Neal Armstrong. Summary of Ivan Cassell Ltd. v. The Queen, 2016 TCC 53 under s. 125(7) – personal services business.