Ability to manipulate revenue through choice was central economic input to outcome of profit

Tax - Income Tax - Employment income

Taxpayer had translation interpretation business and in one taxation year he reported both professional income from his business and other employment income. Employment income reported was for work done for Canadian Border Services Agency (CBSA). CBSA had issued taxpayer T1204 reflecting income from CBSA work taxpayer completed and CBSA recorded taxpayer’s business account number, but not his social insurance number. Minister denied taxpayer Canada employment non-refundable tax credit and employment source for CBSA work income, and reclassified it as professional income from his business. Taxpayer appealed. Appeal dismissed. Only distinctions between CBSA work and business were fact that CBSA work earned him less and constituted more hours but beyond that, taxpayer provided same services on same basis to similar clients as between business and CBSA work. Taxpayer admitted three times that he never proclaimed to be employee of CBSA. Taxpayer admitted he was free to decline CBSA work at will and that he did decline if his business work existed and conflicted. This ability to manipulate revenue through choice and decision was central economic input to outcome of profit. Contract of employment with usual regular hours of work, mandatory attendance and fixed tasks would not be sufficient opportunity to choose among work of differing value for different service recipients.

Marar v. The Queen (2018), 2018 CarswellNat 8328, 2018 CarswellNat 8368, 2018 TCC 259, 2018 CCI 259, Randall S. Bocock J. (T.C.C. [Informal Procedure]).

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