The respondent, a plastic surgeon, incorporated a private hospital and entered into an employment contract with it, assigning his surgical fees to the hospital in exchange for a salary.
The Minister of National Revenue assessed the assigned fees as the respondent's personal income, arguing the hospital was illegally practising medicine.
The Supreme Court of Canada dismissed the Crown's appeal, holding that the respondent, not the hospital, was practising medicine, and the assignment of fees to the hospital under a valid employment contract did not make the fees assessable to the respondent.
