Incorporated for Tax Savings, Reassessed as an Employee -4163931 Canada inc скачать в хорошем качестве

Incorporated for Tax Savings, Reassessed as an Employee -4163931 Canada inc

This video breaks down a real Quebec court case involving a nurse who provided services through a corporation and how the courts analyzed whether that corporation was carrying on a Personal Services Business. In 4163931 Canada Inc. v. Agence du revenu du Québec (2024 QCCQ 4106), the Court reviewed the working arrangement between a nurse, placement agencies, and hospitals during the 2011–2013 tax years. The key issue was whether the corporation operated an active business or functioned as a Personal Services Business under tax law. The Court focused on the practical reality of the work: Nursing duties matched those of hospital-employed nurses Work occurred under hospital supervision and clinical protocols Compensation followed a fixed hourly rate through placement agencies Financial risk and profit variability were limited Integration into hospital operations resembled an employment relationship Based on these factors, the Court concluded that the corporation was carrying on a Personal Services Business. As a result, expense deductions were restricted and additional tax consequences followed. This case highlights how incorporation alone does not determine tax outcomes. Control, integration, and economic reality remain central in how tax authorities assess professional service arrangements. Case link: https://canlii.ca/t/k6q33 CRA reference – Personal Services Business: https://www.canada.ca/en/revenue-agen... Call to Action If you provide services through a corporation or are considering incorporation, a proactive review can reduce future reassessment risk. Email: aman@cloudiverse.ca Phone: 604-200-4027 Disclaimer This video is shared for general educational purposes only. It summarizes a publicly available court decision and does not constitute legal or tax advice. Tax outcomes depend on individual facts and circumstances.