Employer Health Tax (“EHT”) is a part of our overall Indirect Tax practice, and a common EHT question we get is whether two corporations are “associated employers” for the tax. Being associated is problematic, as it essentially makes each employer pay more than if they were unrelated.
While this may seem like a straightforward bedrock question (is "Aco" associated with "Bco"), there is some confusion as to how the technical rules apply (even, it appears, at the Ontario Ministry of Finance (“MOF”) – at least based on some recent Ontario assessment positions that we have seen).
Tagged in:
Associated Employers
Business Structure
Corporate Control
Employer Health Tax
Employer Liability Tax
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