CANADIAN T4A REPORING REQUIREMENTS
COMPLICATED FOR DIRECT SELLERS & DEPENDENT ON DISTRIBUTION MODELS
Canadian direct selling companies (the “Company”) typically operate using one of two different distribution models.
In the “classic model”, independent sales contractors (“ISCs”) would be expected to purchase goods from the Company and resell them to consumers or other ISCs, with the ISCs earning a mark-up on the difference between their purchase and selling prices. In the more modern variation of direct selling distribution, the Company would be expected to sell directly to consumers but compensate their ISCs for acting as either sales agents or sales representatives, based on their parts in putting the sales transaction together.