Discussion Paper - Treatment of Principals Consultation
At issue was a review of current policy with respect to the treatment of principals of limited companies in the Assessment Manual. This policy review focused on three issues:
- the first issue related to the treatment of principals as workers. Current policy contained an exception to the general rule that principals of limited companies were considered workers under the Workers Compensation Act. This exception created uncertainty among stakeholders as to who was considered a worker;
- the second issue related to how shareholder dividends were included in assessable payroll; and
- the third issue related to the treatment of active officers of societies, cooperatives, trade unions and other similar entities.
Consultation closed June 28, 2013.