The Federal Court of Canada just dismissed a company’s application for judicial review of a decision by the Manager of the Taxpayer Relief Program, Appeals Division, of the Canada Revenue Agency. Given that the company ignored the CRA and decided to continue to treat an employee as an independent contractor, it did not make the proper deductions and owed money to the CRA. As a result, the $9,000 penalty and interest under the Income Tax Act still applied-and now, the company also owed costs.
Last year, I discussed a case in which the British Columbia Supreme Court found an employer claimed to constructively dismiss an employee in order to terminate him immediately and avoid paying him the 15 months of notice stipulated in his contract. The employer argued that it gave the employee working notice and a change of assignment: to finding a new job. Not surprisingly, the court found the arrangement to be a “guise” for the immediate termination. Well, the Court of Appeal of British Columbia recently agreed with the initial trial decision.
The federal government’s Bill 60, An Act to implement certain provisions of the budget received royal assent on June 26, 2013, (short title: the Economic Action Plan 2013 Act, No. 1) includes measures to reform the controversial temporary foreign worker program (TFWP).