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The three essential characteristics of the Agency must be present in relation to a transaction in order for that transaction to be considered to have been carried out by an agent on behalf of a payer. Indicators can be useful in determining whether there is an essential quality or characteristics in relation to a given transaction. Depending on the nature of the operation, some indicators are more weighted than others during the determination. The following questions can be asked with respect to each transaction in order to determine the probability that the transaction was made by one person as an agent for another person. After examining the Agency`s legal approach, this article examines three examples of Canadian tax legislation where the existence of a principal representative relationship is significant: (i) the beneficial ownership test in Canada`s tax treaty; (ii) a derived tax obligation under Section 160 of the Income Tax Act and Section 325 of the Excise Duties Act; and (iii) the GST/HST housing benefit under Section 254 of the Excise Act. (d) the date on which the recipient is required, by written agreement, to pay that consideration or part. This decision contrasts sharply with the treatment of cash trusts in Canadian tax law, which generally ignores such a trust because it constitutes an agency relationship (DeMond v The Queen, [1999] 4 CLC 2007 (TCC), paragraph 37). When a person acts as an agent on behalf of a principal when executing a transaction, the principal usually authorizes the agent to do something on behalf of the principal. Therefore, when determining whether a person is acting as an agent on behalf of another person, it must be clear that the agent is making purchases or sales for the payer and not for his own account. While individuals may agree that one person is acting as an agent on behalf of others, the absence of such an agreement alone is not sufficient to indicate that one person is not acting as an agent on behalf of another person. The Goods and Services Tax (GST) is a 5% tax levied on most taxable goods and services in all provinces and territories of Canada, unless there is an agreement for GST to be collected in conjunction with Provincial Turnover Taxes (PST).