Contractors 2017-12-05T17:45:43+00:00

Ask yourself this.

How confident are you that if you were to be audited by the CRA you wouldn’t be reclassified as a PSB (Personal Services Business)?

The Contracting Landscape is Changing – Increasing Your Risk of Reclassification

As most independent contractors are aware, being a contractor rather than an employee of a company can provide numerous financial, tax and work-life balance advantages that are tremendously appealing. However, over the past few years the Canada Revenue Agency has introduced significant changes to the business criteria and classifications that directly impact independent contractors, exposing them to tremendous financial risk upon assessment. And most recently in 2016, CRA added 700 more tax auditors (making a total of 1000) to specifically target PSBs; increasing a contractor’s chances of being audited.

Add to this that Worker’s Compensation eligibility decisions have also started to shift. First, Worksafe BC began refusing coverage to “Independent Contractors” stating they viewed them as a Personal Services Business (PSB). Shortly after Ontario, Alberta and Saskatchewan Workers’ Compensation Boards followed suit. This determination increases the visibility of these contractors as a PSB. Obviously, it’s in the contractor’s best interest to avoid a reclassification that can carry with it a tax reassessment of as much as $25,000 per year or greater.

Without PCSI (Status Quo)

  • At risk of being reclassified as a PSB by the CRA

  • Reassessment; additional taxes, interest owing plus penalties

  • Legal fees related to Tax Court

  • Lost income due to time away from work

With PCSI

  • Protected from being reclassified as a PSB by the CRA
  • Mitigate their tax risk and will not introduce risk to their client

  • Provided with a Legal Defense Fund
  • Earn a return on their initial investment (joining the PCSI Partnership)

Don’t risk losing everything by remaining status quo.

There is another option.

That option is PCSI.

Remaining Status Quo is not
Mitigating Your Risk

Unfortunately, there are several common misconceptions of how contractors believe they are mitigating their risk of being reclassified as a Personal Services Business (PSB).

Many contractors think they are mitigating their risk if they:

  • Work through an intermediary/staffing agency
  • Use a “Formal Contract”, even one provided by CRA
  • Have multiple revenue streams
  • Have a handful of clients or contracts per year

At PCSI we commonly compare these risk tactics that have become the “status quo” to wearing lucky socks, rolling the dice or even crossing your fingers. None of these tactics are an effective risk mitigation strategy. Especially for something as important as your financial stability and providing security for your family.


PCSI has created a legal business structure based on case law and our solution is CRA compliant. Our solution evolves the contractor model in Canada for the next generation of contractors.

Think of PCSI as a way of insuring your classification as an independent contractor.

Ready to learn about the PCSI Solution?

CLICK HERE

Testimonials

Every Independent Contractor in Canada should pay attention to this solution provided by PCSI if they and their accountant are concerned with the PSB issue. Finally, there is a CRA compliant solution that gives a contractor a stable tax structure and more importantly compliance reassurance. As a former CRA Auditor specializing in this area, I can tell you PCSI has done its homework and diligence. Employers also mitigate risk when it comes to the new Dependent Contractor classification.

David Inhaber (FCPA, FCGA)
Former CRA Auditor

Past court cases have shown that traditional approaches are no longer a viable safeguard against the rapidly escalating financial exposure relating to employment issues.By working with PCSI we are able to offer the only true risk mitigation strategy for Canadian companies engaging with
independent contractors.

Kerrianne MacMullin
Airswift Sales Director – Canada

Aly Bandali, CEO of Professional Contractor Solutions, gave a very educational presentation to our Branch. Aly has excellent knowledge of the independent contractor issues. His presentation provided a clear understanding of what the considerations need to be for both contractors and the companies that hire them for their services.

Patrick Landry
CIM Calgary Branch

Aly’s [PCSI] was an excellent session. He is articulate and knowledgeable, and I recommend PCSI’s expertise for any organization whose employees or members are connected in any way to contracting and consulting services, either as a client or provider.

Eric Morin
Association of Science and Engineering Technology Professionals of Alberta (ASET)

The APEGA Calgary Branch organized the presentation “Strategies for Independent Contractors, Employers and Progressive Organizations” by Professional Contractor Solutions. Their presentation was on topic, sometimes surprising, and conducted professionally by the speakers. I recommend these experts to persons or organizations contemplating their engagement.

Tibor Kaldor
APEGA Calgary Branch

Interested in reading about a number of PSB cases uncovered in Calgary in 2017?

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Interested in reading about a number of PSB cases
uncovered in Calgary in 2017?

Click here