Can an employer demand proof of filing taxes for independent contractor?
By John R Mott | September 2, 2013
Logan asked:
Can an employer demand proof of filing taxes if I am an independent contractor and provided already copy of my master business license?
John R Mott answered:
The company's request is unreasonable, in my opinion, but it reveals some anxiety about treating you as an independent contractor rather than an employee. They probably believe they have a greater risk of a CRA payroll assessment if you are not reporting the income. That's probably not true, but it's easy enough to imagine that it might be.
You will want to tread carefully, if you like the work. As an independent contractor, you do not enjoy the same rights under the labour code as an employee. The company is only bound by your contract and is under no obligation to renew it.
In order to allay their fears, this is what you might consider saying: "I understand your concern and I want to assure you that I did file my tax return on such-and-such-a-date, and I did report the income that I earned from the company. I do not want to provide a copy of my tax return for privacy reasons, but I am willing to sign a sworn affidavit to that effect."
You may want to go further and offer that you are more than willing to become an employee of the company and have your taxes deducted at source.
In my humble opinion, a company that is unwilling to assume payroll responsibilities for its workers has no right to meddle in their tax affairs.