Читать книгу Tax Survival for Canadians - Dale Barrett - Страница 25

A contractor may have to prove to the CRA in the course of an audit, that he or she operates as a business independent of the company for which it performs work. In order to do so, there may be an analysis performed of whether, like any other business, the worker was in the position where there was a financial risk, and where he or she could potentially lose money. What differentiates a contractor from an employee is that generally an employee cannot lose money. If he or she shows up to work and does his or her job, the employee gets paid. This is not so for a contractor. Many contractors have invested significant resources in tools, equipment, staff, insurance, and other business costs. This puts them in the position where there is the potential for financial risk.