For a non-recurring activity with a low level of resources, the rating agency recognizes that the complications of developing a comprehensive, formal and written agreement may outweigh the benefits. If a charity spends $5,000 or less on a one-time activity, other documents may be sufficient to indicate the current direction and control of resource use through the intermediary. This may include written instructions, e-mail records, meeting minutes and regular reports. In an agency relationship, the client retains the economic beneficiary of all real estate subject to this relationship. For example, in Prévost Car Inc. v. The Queen, 2008 TCC 231; aff`d 2009 FCA 57, the Tax Court of Canada ruled, and the Federal Court of Appeal upheld that an agent generally does not take the risk of a loss of a transaction with a third party. If, for example.B. the value of the property decreases after the acquisition by the third party, the loss would normally be borne by the client. That does not mean that an agent has no risk.
For example, an agent could be held liable for damage caused by his own negligence. Whether a person has liability insurance or insurance on the property himself can indicate whether or not two people have an agency relationship with respect to the property. If the person does not own the property, but has the responsibility of the property towards its owner, for example. B a broker, it is more likely that this person will have insurance with respect to his liability than for the property himself. To this end, Dr. Akbari signed the purchase and sale agreement with Cheema and her spouse. Cheema and Akbari also agreed that Akbari would have no material interest in the property, would not pay the purchase price or expenses and would not live in the house. In general, “agency” is a type of relationship in which a person (the client) uses another person (the agent) to perform certain tasks on his or her behalf. In Quebec, section 2130 of the Civil Code defines the mandate (which corresponds to the Agency) as a “contract by which a person, the agent, another person, the agent, authorizes him to represent him in the execution of a legal act with a third party, and the agent undertakes by his acceptance to exercise power.” The law uses the terms “agent” and “agency” in a number of provisions that are generally used with a person who has provided a delivery as an agent on behalf of a supplier or receive a delivery as an agent on behalf of a recipient. The law does not define either word. In the absence of a written agency agreement, the parties` behaviour determines whether or not they want to establish an agency relationship. The main feature is the control exercised by the alleged client over the alleged agent.
(Fourney, ibid., at paragraph 45) The conclusion of a written agreement and the implementation of the terms of this agreement are generally an effective means of completing one`s own activity test. However, the rating agency recognizes that in situations where the amount of resources in question is small and is a unique activity, the complications of developing a comprehensive and formal written agreement may outweigh the benefits. In situations where the money spent on a single activity is less than or equal to $1000, other documentary means can be used to show direction and control of resource use by intermediaries. In general, the approach is to examine the role and transactions made by the alleged agent. The questions were therefore formulated to describe the alleged agent as a “person” and the alleged “other party” client. A positive response suggests the existence of an agency relationship.