ARTICLE · 18 FEBRUARY 2022

Employee Vs. Independent Contractor: What To Expect In A CRA Audit

Devry Smith Frank LLP

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As a part of DSF's ongoing Employment Law seminar series, I was asked to participate and provide a tax lawyer's perspective.

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Devry Smith Frank LLP

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As a part of DSF's ongoing Employment Law seminar series, I was asked to participate and provide a tax lawyer's perspective. The question of employee vs. independent contractor can be a very nuanced issue; provincial labour laws are not determinative, and the CRA administers its own set of legislation such as the Income Tax Act¹ under which specific rules have been developed by the Tax Court of Canada, the Federal Court of Appeal and the Supreme Court of Canada.

How is an "Employee" Defined under the Income Tax Act?

It may come as some surprise for a piece of legislation as complex as the Income Tax Act ("ITA"), but the act itself contains no specific definition. Subsection 248(1) simply reads

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