What factors can you identify that are significant in the determination of whether or not there is a partnership? What conclusion do you draw as to whether there is a partnership? Groscki and Durocher were chartered, accountants. Gorski ran a business giving tax advice and providing accounting services, which he operated out of premises that he owned. In 1989, he entered into an agreement with Durocher under which Durocher agreed to review financial statements and prepare tax returns for Groscki’s clients for $20 an hour plus $913 a month. They agreed that Durocher would not be classified as an employee but as an independent contractor. That allowed Durocher to deduct certain expenses in connection with his work against his income for tax purposes. Over time, Durocher assumed more responsibility for managing the business and supervising the staff. Groscki increasingly worked on other business ventures. In 1993, the name on the business letterhead and its sign was changed to say “Groscki and Durocher.” Nevertheless, Durocher was never given signing authority for the business bank account and did not have access to the financial records of the business. In 1993, Durocher loaned $25 000 to Groscki for the business. In 1994, Durocher terminated his relationship with Groscki. Durocher argued that some of the firm’s business belonged to him because he and Groscki were partners

Answer rating: 100% (QA)

On analysing the above case we can draw the conclusion that Groscki and Durocher were not p... View the full answer