Words and Phrases - "agency"

a
89
b
44
c
86
d
56
e
43
f
31
g
20
h
15
i
77
j
2
k
2
l
32
m
57
n
29
o
40
p
82
q
3
r
78
s
95
t
47
u
16
v
10
w
23
y
2

Anand v. The Queen, 2019 TCC 119

Summary Under
Tax Topics - General Concepts - Agency
agency arrangement found notwithstanding written contract terms given that taxpayer acted as a conduit

CRA assessed an individual (“Anand”) on the basis that he had provided services as a general contractor for the construction of a new home (so that he should have charged HST on the full cost to the landowning couple (Dr. Gupta and Dr. Khanna) rather than merely providing services as a construction manager for a fee of $50,000 per year. CRA relied on a contract which had been drafted by Dr. Gupta, perhaps using a template he found on the internet.

Hogan J accepted the oral testimony of Anand and Dr. Gupta that the written contract did not reflect their contractual intent. Such parol evidence could be admitted since there were significant inconsistencies in the contract’s drafting amounting to “patent ambiguity.” Even if there had been no such patent ambiguity, Hogan J might have been prepared to come to the same result on the basis that “latent ambiguity” arose from the “factual matrix” surrounding the contract (para. 53).

Thus the services of the various trades were received by Anand as agent for the couple:

[A]n implied agency relationship existed as the Appellant acted as a conduit between the suppliers and the Homeowners (para. 63).

Words and Phrases
agency
Locations of other summaries Wordcount
Tax Topics - General Concepts - Evidence inconsistencies in written contract were patent ambiguity permitting parol evidence 393

Enterprise Foundry (N.B.) Ltd. v. MNR, 64 DTC 660 (TAB)

Summary Under
Tax Topics - Income Tax Regulations - Regulation 400 - Subsection 400(2)
employee with general authority to contract based on authorized prices and with authority over inventory in independent warehouse was PE

The business of the taxpayer ("N.B.") comprised the selling of stoves in Quebec that were manufactured by an affiliated company whose manufacturing facilities were in New Brunswick. N.B.'s key employee ("Dukelow") resided in Montreal, was in charge of N.B. stock that was kept in a Montreal warehouse owned by an independent warehouse company, attended twice daily at the warehouse in order to handle various matters including approving the orders of other salesmen for shipment, and appeared to all and sundry as the taxpayer's Montreal agent. In finding that the taxpayer had a permanent establishment in Quebec under the predecessor of what now is Regulation 400(2)(b), Mr. Weldon stated (p. 665), that the taxpayer carried on business in Quebec:

"through an employee, Ralph Dukelow, who not only had general authority (which obviously did not need to include power to quote special prices) to make contracts for N.B. but who had a stock of merchandise owned by N.B. (the stock in [the] Montreal warehouse was under Mr. Dukelow's control) from which he regularly filled the various substantial orders which he received."

In addition, "it would be reasonable to treat the Montreal warehouse as that of the taxpayer in a broad sense thereby bringing it within Regulation [400(2)]" (p. 666).

Speaking more generally, he stated at (p. 669) that the taxpayer had a permanent establishment in Quebec because there was an affirmative answer to the following question:

"Is there a definite sales organization large or small in that province, set up on a permanent or stable basis, which is clothed with authority to transact business, complete sales contracts, and arrange shipment of the products covered thereunder?"

Words and Phrases
agency branch
Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 402 - Subsection 402(8) 115