Tax – Income Tax – Employment income
Appellant ran business distributing newspapers in different areas of Montreal. Appellant concluded distribution agreement with division of other company and hired workers. Over two hundred workers at issue were hired by appellant to distribute newspapers in metro stations of Montreal region. Workers were hired verbally as independent contractors. Appellant appealed Minister’s assessments, finding that over two hundred workers were working in insurable employment. Appeal was dismissed by Tax Court of Canada. Tax Court of Canada found that while most workers were informed by appellant that they were considered independent contractors, most of them did not have choice but to accept designation. Tax Court of Canada found that all workers received fixed salary, were required to advise appellant when they arrived at metro station, and could not change location of distribution without consulting appellant. Appellant appealed with Federal Court of Appeal. Appeal dismissed. Appellant decided ultimately where workers worked, and supervised workers to some degree. Workers were not allowed to work for competing companies. There was level of subordination that could only exist in employer-employee relationship. In addition, workers had no opportunities to make profit, and were paid salary at minimum wage. Tax Court judge did not err in concluding that there was no common intention amongst parties.
9178-3472 Québec Inc. c. Canada (Revenu national) (2020), 2020 CarswellNat 84, 2020 CAF 15, Gauthier J.A., Rennie J.A., and George R. Locke J.A. (F.C.A.); affirmed (2019), 2019 CarswellNat 320, 2019 CarswellNat 95, 2019 TCC 15, 2019 CCI 15, Lucie Lamarre J. (T.C.C. [Employment Insurance]).
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