OT- Contractor

[D. Hugh Redelmeier]

| From: Stephen <stephen-d-bJEeYj9oJeDQT0dZR+AlfA at public.gmane.org>

| But there is a huge tax advantage to being incorporated.

One design goal of the Canadian tax system is called "integration".
The aim is that any way money gets to you, directly, through a
corporation, or corporations, or trusts, via dividends, salary, or
distributions, you are supposed to pay roughly the same total tax
end-to-end.

Integration isn't perfect.  It doesn't take into account various
oddball distortions.  It may not take into account lower tax brackets
(I don't know).

So: there is not supposed to be a tax advantage to being incorporated.
But that does not mean that theory and practice match.

As far as I know, the US system doesn't have a similar philosophy.
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