A business owner who pays service providers as independent contractors rather than as employees runs the risk of being assessed for penalties and interest if CRA (the Canadian income tax department) finds that the individuals were in fact employees.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."