Employee or Self-employed? Part 4

by in Small Business Information and Statistics
This is the conclusion of the blog series, Employee or Self-employed written by KD’s Manager for Tax & Accounting, Kevin Penner, CGA.

There are two points I want to make from this.  One is that if you structure your affairs properly you can be whatever you want.  It may involve arguing with CRA but if it is to your advantage to structure your affairs one way over another, you have that right.  The right to structure your affairs to minimize tax is enshrined in jurisprudence in the court case (IRC v. Duke of Westminster).  The second is that the CRA is not consistent in their application of the law.  Right now, they are telling everyone that they have to be employees, yet their actions say that this is only the case if it suits them.

If you want to structure your affairs a certain way you have the right to do so.   However you must make sure that you do everything correctly or the outcome will not be as you intended.  If you are in doubt, get professional help.  Remember that even with proper structuring, the CRA will still try to tell you that what you have done is wrong.  This just means that you will have to fight or get someone to fight for you.  Don’t be afraid.  Just be prepared.  One last comment I will make is that the CRA will never tell you what to do (they are not allowed to give tax advice or tell you how to structure your affairs) until after you have chosen a course of action, so no matter what you choose, there is a risk.  Do whatever is going to allow you to legally pay the least amount of tax.  It is your right.

To link to the Taxpayer Bill of Rights on the CRA website click here.  CRA - Taxpayer Bill of Rights
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