Does an eligible collective agreement apply to the covered worker?
Was compensation element compliance achieved by date of ITC claim?
Yes
Does non-compliance relate to taxpayer’s employees or contractor’s employees?
Was compensation element compliance achieved in accordance with its terms by date of ITC claim?
Taxpayer entitled to regular tax credit rate; no s. 127.46(6) per diem tax
Contractor’s employees
Yes
No
No
Yes
No
Did taxpayer take reasonable steps to ensure contractor compliance?
Prevailing Wage (Compensation Element)
Taxpayer’s employees
Was taxpayer aware of non-compliance at time of ITC claim?
Taxpayer cannot make attestation; must claim reduced tax credit rate
Was taxpayer aware of non-compliance at time of ITC claim?
Taxpayer cannot make attestation; must claim reduced tax credit rate
Yes
No
Can attest
Yes
Taxpayer entitled to regular tax credit rate; s.127.46(6) per diem tax applies; taxpayer must make s.127.46(12) top-up payments or pay s. 127.46(13) 120% penalty
Claim at regular tax credit rate risks s.127.46(9) K/GN consequences
No
Yes
No