3 . Ammar Dayani is a senior executive in a large oil producing company in Canada . The has heard that it would be benef ficial from a lax perspective if he resigned his position , estal lished a company in which he would be the only shareholder and employee , and then have the new company sign a contract with his former employer to provide the same se vices he currently provides as an employee . If Ammar proceeds with this idea , what deductions would the company be able to take that he cannot lake as an employee ? A. The company would be able to deduct all of the costs of operating the company , and would have the ability to pay a salary to Ammar and other family members to split in ome and reduce taxes B . The company would be able to deduct only the salary paid to Ammar C . The company would be able to deduct the salary paid to Ammar , any benefits paid on his behalf , and any other expenses that would normally be deductible against employ ment income D . The company would not be able to deduct any expenses as this would be a personal services corporation