I-3 - Taxation Act

Section 737.18.21 Disposition versions

2022-06-08

737.18.21. (Repealed).

2002, c. 40, s. 60; 2022, c. 23, s. 53.

2006-03-01

737.18.21. For the purposes of this chapter, the following rules apply:

(a)  an amount incurred in a taxation year under an agreement by a corporation, in respect of a person, for services that would normally be rendered by an employee of the corporation is deemed to be a salary or wages incurred in that year for the services in respect of such an employee who reports for work at the establishment of the corporation to which such services are reasonably attributable and to the extent that they are so attributable, except where a commission is paid to a person who is not an employee of the corporation; and

(b)  where an employee renders a service to or on behalf of a corporation that is not the employer of the employee, an amount that may reasonably be considered to be the salary or wages incurred in respect of the employee for the rendering of the service is deemed, for the taxation year during which the salary or wages are so incurred, to be a salary or wages incurred by the corporation for the service, in respect of an employee who reports for work at the establishment of the corporation to which such service is reasonably attributable, to the extent that it is so attributable, and the employee is deemed to be an employee of the corporation, where

i.  the amount is not otherwise included in the aggregate of the salaries or wages incurred by the corporation that are determined for the purposes of this Title, and

ii.  the service rendered by the employee is

(1)  performed by the employee in the normal course of the employee’s duties for the employer,

(2)  rendered to or on behalf of the corporation as part of the regular, ongoing activities of carrying on a business by the corporation, and

(3)  of the same type as services rendered by employees of entities carrying on the same type of business as the business referred to in subparagraph 2.

2002, c. 40, s. 60.