Two unrelated individuals each own 50% of a corporation. If the daughter of one of them is an employee of the corporation, does she deal with it at arm’s length for the purposes of subsection 5(2) of the Employment Insurance Act (Canada)? 5119235 Manitoba Inc. v MNR, 2011 TCC 494, says she’s not if she and the corporate employer are “acting in concert”. Apparently they are acting in concert if the daughter works overtime and isn’t paid extra for it, or customers make complaints about her work, but the employer does little or nothing about it.
