reviewing-psb-risk-facts

name	reviewing-psb-risk-facts
description	Review personal services business risk facts for a Canadian IT contractor operating through a corporation. Use when the user earns contract income through a corporation and there is a risk the arrangement may be characterized as a personal services business by CRA. Accepts engagement descriptions, client relationships, and incorporation facts. Produces a provisional PSB risk fact summary with flags and downstream routing. This skill organizes facts only and does not determine PSB status.
metadata	{"author":"Teplov CPA","version":1,"updated":"2026-04-18T00:00:00.000Z"}

Reviewing PSB Risk Facts

Review personal services business risk facts for a Canadian IT contractor operating through a corporation.

Core Rules

• Organize PSB-relevant facts, do not determine PSB status.
• Do not conclude that the user is or is not a personal services business.
• Do not advise on restructuring arrangements.
• Do not determine tax consequences of a PSB finding.
• Preserve uncertainty where client relationship or incorporation facts are incomplete.
• Flag significant risk indicators for CPA review.
• Do not state that the user's arrangement is compliant.
• Do not state that the user is ready to file.
• Use this phrase where relevant: "That is outside what this workflow covers. It is a question for a CPA before you file."

Inputs

Do not ask the user to share SIN, business number, account numbers, or client names. Use general descriptions and rounded amounts.

Accept any of:

• description of the user's corporate structure
• description of client relationships and contract terms
• prior year T2 return summary
• user explanation in chat

Minimum useful input:

• description of how business income is earned
• whether income flows through a corporation
• description of the primary client relationship

Read from the shared input schema where available: case_id, tax_year, engagement_mode, user_profile, facts.business_activity, facts.corporate_structure, form_context, review_state.

Read from prior skill outputs where available: identifying-income-sources.

Workflow

1. Confirm PSB review is relevant

Check whether the user earns income through a corporation. If the user is self-employed as an individual with no corporation, PSB does not apply to their T1 filing directly. Note this and return not_applicable unless the user has indicated a corporation is involved.

2. Organize incorporation and structure facts

Identify:

• whether the user operates through a corporation
• the nature of the business activity
• whether the corporation has employees other than the user
• whether the user is the sole or primary worker

3. Organize client relationship facts

Identify:

• number of active clients during the year
• whether income is concentrated with one primary client
• whether the client controls the manner of work
• whether the user provides services at the client's premises
• whether the user uses the client's tools or equipment
• whether the user bears financial risk
• whether the user could subcontract the work

Do not draw conclusions. Collect facts only.

4. Assess the concentration of income

Note whether one client accounts for the majority of revenue. High concentration with a single client is a common PSB risk indicator.

5. Identify PSB risk indicators present

Review collected facts against common PSB indicators:

• single dominant client
• client controls manner of work
• user works exclusively at client site
• user uses client tools
• user cannot subcontract
• user has no other employees
• relationship resembles employment

Note how many indicators are present. Do not score or conclude.

6. Flag issues that affect readiness

Flag issues such as:

• high client concentration
• relationship facts suggest possible PSB
• insufficient facts to assess risk
• user has not confirmed whether a corporation is involved
• prior T2 filing may be affected

Only flag issues that materially affect readiness.

7. Prepare downstream routing

Indicate likely downstream uses:

• generating-cpa-handoff-summary
• generating-missing-items-summary

Do not run those workflows inside this skill.

Resource Map

• ../../references/shared-input-schema.md: read to populate input fields
• ../../references/shared-output-schema.md: read to format output fields

Output

Return using the shared output schema. Include:

• facts_accepted: usable PSB-relevant facts the skill relied on
• mappings_proposed: use entries such as risk indicator present, risk indicator absent, unclear, needs_manual_review, not_applicable
• flags: use missing_support, mapping_uncertain, unclear_classification where applicable; use a specific PSB risk flag where indicators are present
• open_questions: only questions needed to resolve meaningful uncertainty; typical useful questions include: Do you operate through a corporation? How many clients did you have this year? Does one client account for most of your revenue? Does the client control how you do your work?
• status: one of ready_for_entry, clarification_required, incomplete, cpa_review_recommended, not_applicable
• client_safe_summary: plain language, short and practical

Also include a PSB risk fact summary grouped into:

• structure facts (corporation, employees, activity)
• client relationship facts (number of clients, concentration, control, tools, subcontracting)
• risk indicators present
• risk indicators absent or unclear
• open issues requiring CPA review

Status Guidance

• ready_for_entry: PSB risk facts are organized and no significant risk indicators are present
• clarification_required: some relevant facts are available but client relationship or structure details are incomplete
• cpa_review_recommended: one or more material PSB risk indicators are present
• incomplete: insufficient facts to assess PSB risk meaningfully
• not_applicable: no corporation involved, PSB not applicable to this filing

Do not use ready_for_entry if material risk indicators are present. Route to cpa_review_recommended in that case.

Validation

• Corporate structure is confirmed or flagged as unresolved.
• Client relationship facts are listed or flagged as missing.
• Each PSB risk indicator is noted as present, absent, or unclear.
• At least one downstream skill is identified in routing.
• status is one of the five standard values.
• client_safe_summary is present and contains no tax advice.