{"id":3007,"date":"2019-11-28T09:00:43","date_gmt":"2019-11-28T14:00:43","guid":{"rendered":"http:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/?p=3007"},"modified":"2020-06-15T12:13:40","modified_gmt":"2020-06-15T16:13:40","slug":"shareholder-of-a-business-employed-or-self-employed","status":"publish","type":"post","link":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/","title":{"rendered":"Shareholder of a Business – Employed or Self-Employed?"},"content":{"rendered":"

[vc_row][vc_column][basic_container container_size=”container container-narrow” bg_overlay=”overlay-light”][vc_column_text]In the recent Licence Appeal Tribunal decision released on October 8, 2019, A.P. and Economical Insurance (Tribunal File Number: 19-000026\/AABS)<\/em>, the Adjudicator found that A.P. (the Applicant) was a self-employed person, as defined by the Schedule<\/em>.\u00a0 Indicators used in identifying a self-employed individual, as outlined from the Financial Services Commissions of Ontario (\u201cFSCO\u201d) case Carr and Lombard (FSCO A00-0041, September 11, 2011), <\/em>were determined to apply to A.P.\u2019s situation.<\/p>\n

Prior to the accident, A.P. was as a hairdresser working 40 hours and earning $599.46 per week.\u00a0 Subsequent to the accident, A.P. returned to work, on a modified basis, working approximately 20 hours and earning $299.73 per week. \u00a0A.P. is a shareholder of the salon.<\/p>\n

Section 3(1) of the SABS outlines the definition of a self-employed person as a person who either:<\/p>\n

    \n
  1. a) \u201cEngages in a trade, occupation, profession or other type of business as a sole proprietorship or as a partner\u2026of a partnership\u201d, or<\/li>\n
  2. b) \u201cIs a controlling mind of a business carried on through one or more private corporations some or all of whose shares are owned by the person\u201d.<\/li>\n<\/ol>\n

    A.P. argues that he is an employee of the salon who rents a chair and works a set number of hours for a fixed weekly salary.\u00a0 On this basis, A.P.\u2019s position is that his income replacement benefits (\u201cIRBs\u201d) should be based on his personal income tax returns and payroll summaries from the salon.<\/p>\n

    Economical argues that A.P. is more than an employee, but rather a self-employed \u201ccontrolling mind\u201d of the salon and that sufficient financial information relating to the operations of the salon has not been provided in order to calculate A.P.\u2019s IRBs.<\/p>\n

    The Adjudicator found that the indicators used in the FSCO case Carr and Lombard (FSCO A00-0041, September 11, 2011) <\/em>in identifying a traditional self-employment situation were applicable to A.P. as he is a shareholder of the salon, he reported a consistent salary that did not fluctuate during the last three years, he did not pay employment insurance and he is able to control his hours of work.<\/p>\n

    Based on the facts, the Adjudicator determined that A.P. is both a shareholder and controlling mind of the salon and therefore, considered self-employed for purposes of calculating his IRBs.<\/p>\n

    Read the decision in full detail here:<\/h4>\n

    A.P. v Economical Mutual Insurance Company, 2019 CanLII 101433 (ON LAT)<\/a><\/strong><\/p>\n

    [\/vc_column_text][\/basic_container][\/vc_column][\/vc_row][vc_row][vc_column][basic_container]

    \r\n\t\t\t\t\t\t\t\t\t\r\n\t\t\t\t
    \r\n\t\t\t\t\t\r\n\t\t\t\t\t

    \r\n\t\t\t\t\t\tAre Insurers Obligated to Pay for Plaintiff Accounting Reports?\t\t\t\t\t<\/h2>\r\n\r\n\t\t\t\t\t\t\t\t\t\t\t
    \r\n\t\t\t\t\t\t\tMay 28, 2020\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t\r\n\t\t\t\t\t

    A growing trend has emerged recently as it relates to individuals making a claim for income replacement benefits (\u201cIRBs\u201d). \u00a0More frequently than ever, insured\u2019s seem ...<\/p>\n\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\t\tRead More<\/span>\r\n\t\t\t\t\t\t\t<\/a>\r\n\t\t\t\t\t\t\t\t\r\n\t\t\t\t

    \r\n\t\t\t\t\t\r\n\t\t\t\t\t

    \r\n\t\t\t\t\t\tSelf-Employed Individuals \u2013 Last 52 Weeks or Last Completed Taxation Year?\t\t\t\t\t<\/h2>\r\n\r\n\t\t\t\t\t\t\t\t\t\t\t
    \r\n\t\t\t\t\t\t\tMay 20, 2020\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t\r\n\t\t\t\t\t

    For self-employed individuals seeking to claim an income replacement benefit (\u201cIRB\u201d), the calculation of their pre-accident gross weekly income is not always straightforward.\u00a0 Two recent ...<\/p>\n\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\t\tRead More<\/span>\r\n\t\t\t\t\t\t\t<\/a>\r\n\t\t\t\t\t\t\t\t\r\n\t\t\t\t

    \r\n\t\t\t\t\t\r\n\t\t\t\t\t

    \r\n\t\t\t\t\t\tLAT rules on Section 8(1) for IRB Purposes\t\t\t\t\t<\/h2>\r\n\r\n\t\t\t\t\t\t\t\t\t\t\t
    \r\n\t\t\t\t\t\t\tMarch 19, 2020\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t\r\n\t\t\t\t\t

    In the LAT decision released on January 13, 2020, T.A.K. v Aviva General Insurance Company (18-008232\/AABS), the Adjudicator provides interpretation for the Section 8(1) adjustment ...<\/p>\n\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\t\tRead More<\/span>\r\n\t\t\t\t\t\t\t<\/a>\r\n\t\t\r\n\t\t\t\t\t

    \r\n\t\t\t\t
    <\/div>\r\n\t\t\t\t
    \r\n\t\t\t\t\t1<\/a>2<\/a>3<\/a>\t\t\t\t<\/div>\r\n\t\t\t\t
    Next<\/a><\/div>\r\n\t\t\t<\/div>\r\n\t\t\t<\/div>\r\n[vc_empty_space]\t
    \n\t\t\n\t\t\tRead More Updates\t\t<\/a>\n\t<\/div>\n[vc_empty_space][\/basic_container][\/vc_column][\/vc_row][vc_row][vc_column]
    \t
    \n\t\t
    1400:https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/app\/uploads\/2020\/03\/Advisory-Group-6-2020-8x2.75-1600x533.jpg\">\n\t\t\t\t\t\t
    <\/div>\n\t\t\t
    \n\t\t\t\t
    \n\t\t\t\t\t
    \n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t
    \n\t\t\t\t\t\t\t\t

    Work With Us<\/h2>\n

    Our Advisors are ready to have
    \na personalized discussion with you.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t

    \n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tContact Us\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t \t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><\/div><\/div>[\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"In the LAT decision released on January 13, 2020, T.A.K. v Aviva General Insurance Company (18-008232\/AABS), the Adjudicator provides interpretation for the Section 8(1) adjustment in the SABS. The Applicant was injured in a motor vehicle accident on December 10, 2016. Prior to the accident, both parties agreed the Applicant was employed earning $19,847.96 during [...]","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3007","post","type-post","status-publish","format-standard","hentry","category-insurance-claim-and-litigation-updates"],"acf":[],"yoast_head":"\nShareholder of a Business - Employed or Self-Employed? - Davis Martindale<\/title>\n<meta name=\"description\" content=\"Summary of recent LAT decision:the Adjudicator found that A.P. (the Applicant) was a self-employed person, as defined by the Schedule. Find out more.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shareholder of a Business - Employed or Self-Employed? - Davis Martindale\" \/>\n<meta property=\"og:description\" content=\"Summary of recent LAT decision:the Adjudicator found that A.P. (the Applicant) was a self-employed person, as defined by the Schedule. Find out more.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/\" \/>\n<meta property=\"og:site_name\" content=\"Davis Martindale\" \/>\n<meta property=\"article:published_time\" content=\"2019-11-28T14:00:43+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-06-15T16:13:40+00:00\" \/>\n<meta name=\"author\" content=\"Amanda Moss\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Amanda Moss\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/\",\"url\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/\",\"name\":\"Shareholder of a Business - Employed or Self-Employed? - Davis Martindale\",\"isPartOf\":{\"@id\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/#website\"},\"datePublished\":\"2019-11-28T14:00:43+00:00\",\"dateModified\":\"2020-06-15T16:13:40+00:00\",\"author\":{\"@id\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/#\/schema\/person\/8aa414e37b007fc9d1e0b0b69adbf50d\"},\"description\":\"Summary of recent LAT decision:the Adjudicator found that A.P. (the Applicant) was a self-employed person, as defined by the Schedule. Find out more.\",\"breadcrumb\":{\"@id\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/#breadcrumb\"},\"inLanguage\":\"en-CA\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Blogs, News & Resources\",\"item\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/blogs-news-and-resources\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Shareholder of a Business – Employed or Self-Employed?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/#website\",\"url\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/\",\"name\":\"Davis Martindale\",\"description\":\"Accountants with personality!\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-CA\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/#\/schema\/person\/8aa414e37b007fc9d1e0b0b69adbf50d\",\"name\":\"Amanda Moss\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-CA\",\"@id\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/28c069c2801e917262202379ba4cfa00213ab7760b75cd84332227724bfd6640?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/28c069c2801e917262202379ba4cfa00213ab7760b75cd84332227724bfd6640?s=96&d=mm&r=g\",\"caption\":\"Amanda Moss\"},\"url\":\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/author\/amoss\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Shareholder of a Business - Employed or Self-Employed? - Davis Martindale","description":"Summary of recent LAT decision:the Adjudicator found that A.P. (the Applicant) was a self-employed person, as defined by the Schedule. Find out more.","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"Shareholder of a Business - Employed or Self-Employed? - Davis Martindale","og_description":"Summary of recent LAT decision:the Adjudicator found that A.P. (the Applicant) was a self-employed person, as defined by the Schedule. Find out more.","og_url":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/","og_site_name":"Davis Martindale","article_published_time":"2019-11-28T14:00:43+00:00","article_modified_time":"2020-06-15T16:13:40+00:00","author":"Amanda Moss","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Amanda Moss","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/","url":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/","name":"Shareholder of a Business - Employed or Self-Employed? - Davis Martindale","isPartOf":{"@id":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/#website"},"datePublished":"2019-11-28T14:00:43+00:00","dateModified":"2020-06-15T16:13:40+00:00","author":{"@id":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/#\/schema\/person\/8aa414e37b007fc9d1e0b0b69adbf50d"},"description":"Summary of recent LAT decision:the Adjudicator found that A.P. (the Applicant) was a self-employed person, as defined by the Schedule. Find out more.","breadcrumb":{"@id":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/#breadcrumb"},"inLanguage":"en-CA","potentialAction":[{"@type":"ReadAction","target":["https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/shareholder-of-a-business-employed-or-self-employed\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/"},{"@type":"ListItem","position":2,"name":"Blogs, News & Resources","item":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/blogs-news-and-resources\/"},{"@type":"ListItem","position":3,"name":"Shareholder of a Business – Employed or Self-Employed?"}]},{"@type":"WebSite","@id":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/#website","url":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/","name":"Davis Martindale","description":"Accountants with personality!","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-CA"},{"@type":"Person","@id":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/#\/schema\/person\/8aa414e37b007fc9d1e0b0b69adbf50d","name":"Amanda Moss","image":{"@type":"ImageObject","inLanguage":"en-CA","@id":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/28c069c2801e917262202379ba4cfa00213ab7760b75cd84332227724bfd6640?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/28c069c2801e917262202379ba4cfa00213ab7760b75cd84332227724bfd6640?s=96&d=mm&r=g","caption":"Amanda Moss"},"url":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/author\/amoss\/"}]}},"_links":{"self":[{"href":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/comments?post=3007"}],"version-history":[{"count":1,"href":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3007\/revisions"}],"predecessor-version":[{"id":3008,"href":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3007\/revisions\/3008"}],"wp:attachment":[{"href":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/media?parent=3007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/categories?post=3007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/tags?post=3007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}