QUOTE(legiwei @ Apr 25 2009, 12:22 AM)
You will have to look at the terms of the contract. However, from my interpretation, he seems to be more of an employee. Does he have a EA? Just a guide, the word "employee" is defined in the act as :
“Employee” in relation to an employment means -
a. the servant, where the relationship of master and servant subsists;
b. where the relationship of master and servant does not subsist, the holder of the appointment or office which constitutes the employment.
If he is a contracted employee, he is not allowed to deduct any of his direct expenses.
Yes. He is an employee. He is has an EA form.
I was told by the him, the previous accountant who did the submissions for him, advised him that he is entitled to deduct the expenses as such, hair cut, shirts etc as these are 'tools' which are necessary for him to carry out his duty effectively. As the previous accountant charged him to accessively, he came to me. FYI, I am doing it FOC for him seeing that he is my closed fren and I am just trying my best to assist him. I am not an accountant btw.
So how much is the limit set for this category?
Thanks.