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George runs an incorporated business and earns a comfortable income of $100,000 a year. His teenage daugheter Sara also works in the company's warehouse part
George runs an incorporated business and earns a comfortable income of $100,000 a year. His teenage daugheter Sara also works in the company's warehouse part time after school a couple of days a week and on Saturdays. George pays her $55,000 per year for this work. If CRA audits George's company, how will they view the compensation that is paid to his daughter? It may be viewed as unreasonable resulting in the loss of tax deductibility for the business, while remaining taxable to Sara. It may be viewed as unreasonable resulting in the loss of tax deductibility for the business, while the income will be attributed back to George The CRA will disallow the
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