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Is SNC-Lavalin Bending Rules to Avoid Paying Taxes
Is SNC-Lavalin Bending Rules to Avoid Paying Taxes? http://www.exchangemagazine.com/morningpost/2012/week27/Friday/12070607.htm
..."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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