[e-drive]EQUIFLASH [CRA CONFIRMS THAT PERFORMERS ARE SELF-EMPLOYED AT MAGNUS THEATRE]

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CRA CONFIRMS THAT PERFORMERS ARE SELF-EMPLOYED AT MAGNUS THEATRE
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Equity and PACT Members Celebrate Decision

NATIONAL - In a move that is being hailed by Canadian Actors' Equity
Association (CAEA) and The Professional Association of Canadian Theatres
(PACT) as a great day for the performing arts in Canada, the Canada
Revenue Agency (CRA) has voluntarily agreed to allow the appeal in the
matter of Magnus Theatre Northwest v. Minister of National Revenue.
This effectively wipes out an earlier ruling by the CRA, which had found
artists to be "employees" of the theatre.

A single ruling issued earlier this year by the local Thunder Bay CRA
office had deemed an actor to be an employee of the theatre for two
short-term contracts he had undertaken in 2002 and 2003.  Subsequently a
company-wide ruling determined that all artists, including actors,
playwrights, designers and directors were similarly affected.  Magnus
Theatre, the artists affected, CAEA and PACT all appealed in the hopes
of reversing the devastating ruling.  The theatre had been ordered to
pay CPP and EI benefits retroactively for two-plus years and the artists
have had their income tax returns reassessed to disallow legitimate
business expenses.

Performing and creative artists have long held the tax status of
"independent contractors" in Canada, consistent with the way they work
and the nature of the art forms.  However, in the past several years,
CRA has reverted to outdated interpretations of some statutes and
jurisprudence and come to the conclusion that artists are in fact
"employees".  In a similar ruling out of Thunder Bay regarding the
city's symphony, the effects were so detrimental as to nearly cripple
that city's orchestra.

There are still 52 independent contractors of the theatre waiting for
corollary relief. CRA deemed them to be employees of the theatre on the
basis of the initial assessment. The parties will continue to press CRA
to reverse these determinations.
"This is a wonderful day for artists.  Hopefully now we can open a
dialogue with the CRA and help them understand what it is to be an
artist in Canada," said Henry Gauthier, President of CAEA.  "The fight
is not over," he added, "we must receive assurances that there will be a
standard of national treatment of artists that brings consistency to
their working lives." 

PACT President Andy McKim reiterated this sentiment, "On behalf of all
professional theatres in Canada, we could not be more pleased with this
outcome.  Together with CAEA, we achieved the result we wanted in a case
that was critical to both organizations' memberships.  We will continue
to work together on this issue until we achieve a national result."

Canadian Actors' Equity is the professional association of performers,
directors, choreographers, fight directors and stage managers in English
Canada who are engaged in live performance in theatre, opera and dance. 

The Professional Association of Canadian Theatres is a member-driven
organization that serves as the collective voice of professional
Canadian theatres.   

If you are an Equity member directly affected by this decision, that is
if you worked at Magnus in 2002 or 2003 or are currently under contract
for the 2004-2005 season, please contact Douglas Irons at 416-867-9165,
ext. 2476.

As more information becomes available it will be posted on the web sites
of both organizations.

Media Contact: 	
Darlene Bullard, Communications Director, CAEA
416-867-9165 or cellular (416) 996-0669
Interviews available in French or English
www.caea.com

Kirsten Kamper, Communications Manager, PACT
416 595-6455 x 12
www.pact.ca
	
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Canadian Actors' Equity Association
44 Victoria Street, 12th Floor
Toronto, ON M5C 3C4
Tel: 416-867-9165
Fax: 416-867-9246
e-mail: communications at caea.com