13 June 1994 Ministerial Letter 9413888 - EMPLOYEE/EMPLOYER STATUS

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

Employer/Employee status

Position TAKEN:

Question of Fact. Should contact the Local District Taxation Office for a Ruling. General Information given.

Reasons FOR POSITION TAKEN:

Ruling required from CPP/UI Rulings

MINISTER/DM'S OFFICE 94-05188M
ADM'S OFFICE

RETURN TO RULINGS, ROOM 303, MET. BLDG.

AUTHOR
SUBJECT OR CORPORATE CASE FILE

XXXXXXXXXX

Dear XXXXXXXXXX:

Thank you for your letter of May 16, 1994, concerning the employment status of individuals working for one of your constituents, XXXXXXXXXX.

The Department takes many factors into consideration in establishing whether an individual is an employee or self-employed. The question to be determined is whether the contract between the parties is a contract of service which is evidence of an employer and employee relationship or is a contract for services which indicates a client and independent contractor relationship. A contract may be express or implied. The question is based on common law concepts which are followed in determining the nature of contractual arrangements between the worker and payer. The determination of whether there is an employer and employee relationship in a particular situation is a question of fact.

To determine whether a contract of services or contract for services exists, your constituent can seek a ruling from the Source Deductions Section of the Department's District Taxation Office serving its geographical location. While your constituent's company has undergone some corporation tax audits, it appears that the scope of these audits did not encompass a review of the employment status of the individuals in question. In order to resolve this issue, I invite your constituent to contact Mr. Morley Ceresne, Assistant Director, Revenue Collections, at the Scarborough District Taxation Office, 200 Town Centre Court, Scarborough, Ontario, M1P 4Y3. Mr. Ceresne can also be reached by calling 1-800-387-5228, toll free.

I appreciate being made aware of your concerns and trust that the information provided will be of assistance.

Yours sincerely,

David Anderson, P.C., M.P.

c.c. Mr. Morley Ceresne

Assistant Director, Revenue Collections
Scarborough District Taxation Office

Danielle Zion
957-2140
941388
June 13, 1994