Sunday, 8 July 2012

Is SNC-Lavalin Bending Rules to Avoid Paying Taxes

Is SNC-Lavalin Bending Rules to Avoid Paying Taxes? ..."The Society of Professional Engineers and Associate (SPEA) is holding an information picket this morning at the Toronto offices of the Canada Revenue Agency (CRA) to urge them and the Ontario Ministry of Finance to investigate the inappropriate use of contractors at SNC-Lavalin's newly acquired subsidiary, Candu Energy Inc. to avoid paying taxes and Workplace Safety and Insurance Board (WSIB) premiums.
Both companies and individuals pay considerably less in taxes if they label their relationship as a "contractor" relationship, rather than an "employment" one. The company or the individual in a contractor relationship does not pay CPP, EI and WSIB premiums.
"We understand why individuals and companies are tempted to mislabel their relationship so as to minimize taxes," said Peter White President of SPEA. "However we are troubled why the CRA does not take a more active role in combating this abuse, the result of which is lower tax revenue for our governments, which results in higher taxes for the rest of us."
Since the federal government announced the sale of the commercial division of Atomic Energy of Canada Limited (AECL) to SNC-Lavalin in June of 2011, scientific and technical staff has been reduced by approximately 25%. The number of contractors has more than tripled since the October 2011 sale closed.
According to White, "Some of the contractors pre-date SNC-Lavalin's acquisition of AECL. They have been around for three, four or more years. The vast majority of these contractors and the more recent hires easily meet the CRA's definition of employees.""

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