Just As Intended: 1392644 Ontario Inc. et. al. v. The Queen

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The role of intent in the determination of whether a worker is an employee or independent contractor has taken on greater significance in the last decade or so.

The Federal Court of Appeal has considered the role of intent in the classification analysis in Wolf v. The Queen, Royal Winnipeg Ballet v. The Queen, City Water International Inc. v. M.N.R., Combined Insurance Co. of America v. M.N.R.National Capital Outaouais Ski Team v. M.N.R., Kilbride v. The Queen and TBT Personnel Services v. M.N.R. 

In Lang and Lang v. M.N.R., Chief Justice Bowman of the Tax Court of Canada reviewed the underlying principles and stated that (i) intent is a test that cannot be ignored but its weight is as yet undetermined, and (ii) trial judges who ignore intent stand a very good chance of being overruled by the Federal Court of Appeal.

In the June 6, 2013 issue of Tax Topics, I discuss the Federal Court of Appeal’s recent decision in 1392644 Ontario Inc. et. al. v. The Queen, where the Court clarifies (i) the role of intent and (ii) the manner in which the classification analysis should be undertaken.