A View to a Kill
– Duran Duran, 1985
You may not know it but the CRA has taken a view to kill off incorporated IT consultants that don’t measure up to the new rules.At CPA4IT we can help. We will advise you on what you need to do to stay on the right side of the line to maintain your incorporated status. We also provide an Audit Protection Guarantee, and that is something you can take to the bank. Without the right advice you could be reclassified as a ‘Personal Service Business’ and this is something you do not want. If this happens you stand to lose:
- Business expense deductions,
- Income splitting with family members, and
- The low corporate income tax of 12.2% on the first $500,000 of active business income.
- Employ more than 5 full-time employees,
- Pass the ‘Control Test’ of an employer-employee relationship,
- Meet the standards of the ‘Ownership of Tools Test’,
- Provide properly detailed written contracts,
- Pass the test of being able to demonstrate the reality of both Profit or Loss
- Meet the ‘Integration Test’ for the business and employees.