Muirhead – Tax Court of Canada notes that clients do not pay overtime rates

Boyle J. (who does not mince words) has clearly articulated that it is irrelevant, in determining whether an individual’s corporation has a personal services business, that the corporation and the services recipient intended their contract to be one for services, as that will always be the case.  The focus instead is on whether the individual would have been an employee if his or her corporation didn’t exist.  Boyle J also observed that being paid extra for overtime generally is inconsistent with a non-employee relationship.

Neal Armstrong.  Summary of G & J Muirhead Holdings Ltd. v. The Queen, 2014 TCC 49 under s. 125(7) – personal services business.