Marotta v. Minister of National Revenue, (1986) 2 F.T.R. 125 (TD)

JudgeMcNair, J.
CourtFederal Court (Canada)
Case DateNovember 26, 1985
JurisdictionCanada (Federal)
Citations(1986), 2 F.T.R. 125 (TD)

Marotta v. MNR (1986), 2 F.T.R. 125 (TD)

MLB headnote and full text

Marotta v. Minister of National Revenue

(Nos. T-132-78; T-133-78)

Indexed As: Marotta v. Minister of National Revenue

Federal Court of Canada

Trial Division

McNair, J.

March 7, 1986.

Summary:

A physician appealed from a reassessment by the Minister of National Revenue treating certain remuneration as income from an office or employment and not as earnings from a professional partnership.

The Federal Court of Canada, Trial Division, dismissed the appeal.

Income Tax - Topic 522

Income from office or employment - Employment contract - What constitutes - Contract of service distinguished from contract for services - A physician was hired by the University of Toronto to be the physician-in-chief at St. Michael's Hospital, a teaching hospital affiliated with the U. of T. medical faculty - He was permitted a limited income from private practice, but his position was that of a full-time professor of medicine - The Federal Court, Trial Division, held that the physician's remuneration from the University was income from employment and not income from a business, because he was employed under a contract of service and not a contract for services - The court discussed and applied four tests for characterizing the relationship: control test, organization or integration test, economic reality test and specified result test.

Cases Noticed:

Simmons v. Heath Laundry Company, [1910] 1 K.B. 543 (C.A.), appld. [para. 12].

Stagecraft Limited v. Minister of National Insurance, [1952] S.C. 288, appld. [para. 12].

Morren v. Swinton and Pendlebury Borough Council, [1965] 2 All E.R. 349 (Q.B.D.), appld. [para. 12].

Short v. J. and W. Henderson Limited (1946), 62 T.L.R. 427 (H.L.), appld. [para. 12].

Argent v. Minister of Social Security, [1968] 1 W.L.R. 1749 (Q.B. D.), appld. [para. 12].

Humberstone v. Northern Timber Mills (1949), 79 C.L.R. 389 (H.C.A.), appld. [para. 12].

Sim v. M.N.R., 66 D.T.C. 5276 (Ex. C.), appld. [para. 12].

Market Investigations Limited v. Minister of Social Security, [1969] 2 Q.B. 173 (Q.B.D.), appld. [para. 12].

Stevenson, Jordon and Harrison, Ltd. v. MacDonald and Evans, [1952] 1 T.L.R. 101 (C.A.), appld. [para. 16].

Rosen v. R., 76 D.T.C. 6274 (F.C.T. D.), consd. [para. 17].

Co-Operators Insurance Ass'n v. Kearney (1964), 48 D.L.R.(2d) 1 (S.C.C.), consd. [para. 18].

Montreal v. Montreal Locomotive Works, [1947] 1 D.L.R. 161 (P.C.), consd. [para. 19].

R. v. Mac's Milk Ltd. (1973), 40 D.L. R.(3d) 714 (Alta. C.A.), consd. [para. 19].

Boardman v. R., 79 D.T.C. 5110 (F.C. T.D.), consd. [para. 19].

Alexander v. M.N.R., 70 D.T.C. 6006 (Ex. C.), consd. [para. 20].

Statutes Noticed:

Income Tax Act, S.C. 1970-71-72, c. 63, sect. 5(1) [para. 9].

Counsel:

B.R. Carr and C. Campbell, for the plaintiff;

L.P. Chambers, Q.C., and E. Thomas, for the defendant.

Solicitors of Record:

Davies, Ward & Beck, Toronto, for the plaintiff;

Frank Iacobucci, Q.C., Deputy Attorney General of Canada, for the defendant.

This case was heard on November 26, 1985, at Toronto, Ontario, before McNair, J., of the Federal Court of Canada, Trial Division, who delivered the following judgment on March 7, 1986:

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT