Canadian Musicians Employment Status Archive Excerpts from May 2001 SSD Canada Newsletter
CCRA Set to Issue Tax Status Guidelines
After many months of industry meetings, internal debate, and information sharing, the Joint Industry Task Force (JITF), consisting of representatives from OCSM, the AFM, and Orchestras Canada, is anxiously awaiting draft interpretation guidelines from the Canada Customs and Revenue Agency (formerly Revenue Canada). The purpose of the anticipated guidelines is to clearly identify factors or combinations of factors in an orchestra/musician relationship that would point to employment, and those that would point to self-employment, for tax purposes. The issue became a priority for the CCRA when the matter was brought to the forefront at the November 2000 Chalmers Conference on Self-Employment and the Artist. The JITF has been assured by CCRA personnel that the guidelines will be presented in draft form and that the interested parties will have an opportunity to provide input before they are finalized. In October 2000 the AFM conducted a survey of elected representatives of the symphonic membership. It became clear at that time that the preferred outcome would be to receive assurance from the CCRA that the status quo could be maintained, whether one of employment or self-employment. Any other outcome would almost certainly create serious transition problems for orchestras and musicians facing an imposed change of status. People and organizations quite naturally adapt to existing circumstances. It would be just as devastating for currently employed musicians to lose their Employment Insurance benefits, as it would for currently self-employed musicians to lose much of their ability to write off business expenses against their symphonic income. It is clear, however, that without clear guidelines from the CCRA, our orchestras and musicians cannot reasonably hope to maintain the status quo. The Thunder Bay Symphony crisis, caused by a Revenue Canada ruling in 1996, was just the beginning. Since then, orchestras in Windsor, London, Trois-Rivieres, and most recently Charlottetown, have all had changes of status imposed at either the federal or provincial level. Despite concerns about possible transition problems, the JITF remains convinced that clarity, in whatever form it might take, is preferable to the ongoing problems caused by continuing uncertainty. In a letter sent in late April, the JITF has urged the CCRA to move forward quickly on this issue. The problems identified in the letter include financial hardship caused by unexpected imposed rulings, difficulty in attracting and retaining board members, a chilling effect on negotiations, and increasing unfairness and disparity as organizations take divergent approaches to the problem. When musicians have clarity as to their tax status and reasonable certainty that their status will no longer be subject to sudden and unexpected change, the members of the JITF will be able to move forward with a concerted lobbying effort aimed at securing access for all musicians to social benefits such as EI as well as to the right to claim reasonable business expense deductions. These benefits are similar to those enjoyed by workers in other industries who, like musicians, are not easily categorized. In an environment where the Liberal government is demonstrating an increased level of support for the arts, it is the task of the JITF to persuade the government that such support must include a fair and equitable taxation policy.
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