eMail Article To a Friend View Printable Version

PSB PERSONAL SERVICE BUSINESS Tax penalties for oneman corporation Working More Than 2 Years With Same Company, At The Same Pos


My question is: Canadian-specific

QUESTION:

I am providing a consulting services to a client through a third party/headhunter, means my client where I actually work doesn't directly pay me, she pays to the Headhunter/personal resources company, then they pay to my Company and my Company pays me …. I have been working for the same client almost 2 years, and my client wants to renew my contract to another 6-12 months, but they are saying per Canada Revenue, "A contract worker can't work on the same position more than 2 years", so the only way that I can renew my contract is, if I just work till end the end of my current contract and then work some where else for 4-5 months, and then I can come back and can work on the same position as a contractor
My questions: First, is there such a rule per CRA, second would that rule apply to my situation, where all payment transactions are made between the Incorporated companies; no one directly pays to me but my own Incorporated company..

Thanks