OT- Contractor

[John Sellens]

| Where there is a 
| saving is that costs incurred to earn the revenue can be deducted by a 
| corporation, but not an individual.

Not correct - a business, incorporated or not, can deduct expenses
incurred to earn the revenue.


| The other advantage is the flexibility to pay dividends in years 
| other than when the revenue was earned. So if you have a good year, you 
| don't have to take a big tax hit too.

Not generally correct - the corporation pays tax on income. When you
receive dividends, you pay tax on that income and receive (unless things
have changed in recent years) a dividend tax credit intended to reflect
the tax paid by the corporation.

i.e. integration

John
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