Advocacy - Personal Services Business legislation

An attack on small business

Personal Services Business Legislation creates unfair disadvantage

One of APCC’s core issues is combatting the current negative sentiment towards small services businesses, which is manifested in the Canadian government’s Personal Services Business (PSB) legislation and policies.

The Personal Services Business concept defined in section 125(7) of the Income Tax Act.  It targets services businesses with 5 or fewer employees and establishes a punitive tax treatment for these organizations that place them at a significant disadvantage to non-PSB small businesses and even large multinational corporations.

The core goal of PSB legislation appears to exert pressure on small business entrepreneurs in the services sector via the Income Tax Act space and force them into a traditional employment model.

This thinking is based on several incorrect assumptions, and the APCC is committed towards providing education and outreach to both the government and business community, with the end goal of supporting freedom of organization for Canada’s Independent Contracting and small business community.

The APCC has been an advocate in ongoing communications with the Canadian Government on the topic of Independent Contractors and small businesses and its negative effect on the Canadian economy. While progress has been made on the PSB issue, the APCC feels strongly that a true and lasting solution can only come from improvement in federal legislation concerning the rules governing these workers.