On September 9th the Ottawa Citizen published an article centering on Trudeau’s opinion that a “large share of small businesses are used by wealthy people to avoid paying taxes.”
According to Statistics Canada’s 2014 Labour force estimates, over 15% of Canadians are self-employed. People choose to be self-employed for many and varied reasons including: being underemployed (women and minorities make up a large percent of Canadian entrepreneurs), capitalizing on a niche opportunity in the market place such as a new local retail establishment, or spreading knowledge and expertise in a market through a consulting channel.
Trudeau does not state what percent of the 2.7 million self-employed Canadians are not paying taxes and abusing the system. What we do know is frequent changes by the CRA has created an unpredictable tax structure for small business corporations; a group vulnerable to swings in changes (search the topic: Personal Services Business). Professional Contractor Solutions Incorporated (PCSI) was created in response to a growing need of self-employed Canadians who find themselves under serviced and limited in their ability to rely on a reliable and consistent tax structure. Partners in PCSI can stay focused on what matters to them most: serving their customer. For more information please contact us.