Independent Contractor vs. Employee
The distinction between independent contractor and employee is critical as getting it wrong can cost both parties.
On the payor’s side, a Canada Revenue Agency (CRA) audit can be time-consuming and may result in penalties and interest charges. On the payee side, an audit may result in business expenses being disallowed and additional tax liability.
Our lawyers are skilled in drafting independent contractor agreements and providing strategic advice on how to structure the relationship in order to withstand the scrutiny of the CRA.
When an independent contractor relationship is deemed to be employment, we can assist with effective advocacy before the Tax Court of Canada in Employment Insurance and Canada Pension Plan appeals.