Ammar Dayani Is a Senior Executive in a Large Oil

Ammar Dayani is a senior executive in a large oil producing company in Canada. He has heard that it would be beneficial from a tax perspective if he resigned his position, established a company in which he would be the only shareholder and employee, and then have the new company sign a contract with his former employer to provide the same services he currently provides as an employee. If Ammar proceeds with this idea, what deductions would the company be able to take that he cannot take as an employee?

A) The company would be able to deduct all of the costs of operating the company, and would have the ability to pay a salary to Ammar and other family members to split income and reduce taxes.
B) The company would be able to deduct only the salary paid to Ammar.
C) The company would be able to deduct the salary paid to Ammar, any benefits paid on his behalf, and any other expenses that would normally be deductible against employment income.
D) The company would not be able to deduct any expenses as this would be a personal services corporation.