On January 31, 2001, the Tax Court of Canada decided that an insurance salesperson could shift commissions to his personal corporation. The case Wallsten et al v. The Queen will be of particular interest and comfort to mutual fund salespersons who, for business and/or tax (e.g. to obtain the small business deduction) reasons, have decided to shift or are contemplating shifting commissions received from mutual fund dealers to personal corporations. On the other hand, we expect that this case will not be the final word on whether, and the extent to which, insurance or mutual fund commissions can be shifted to personal corporations.

type Transferring Commissions - The Tax Court of Canada Speaks