Income Tax Regulations (C.R.C., c. 945)

Regulations are current to 2016-01-25 and last amended on 2015-07-01. Previous Versions

Deductions Not Required

  •  (1) [Repealed, SOR/2001-221, s. 4]

  • (2) No amount shall be deducted or withheld from a payment in accordance with section 102 or 103 in respect of an employee who was neither employed nor resident in Canada at the time of payment except in respect of

    • (a) remuneration described in subparagraph 115(2)(e)(i) of the Act that is paid to a non-resident person who has in the year, or had in any previous year, ceased to be resident in Canada; or

    • (b) remuneration reasonably attributable to the duties of any office or employment performed or to be performed in Canada by the non-resident person.

  • (3) No amount shall be deducted or withheld from a payment made by a person during the lifetime of an annuitant referred to in paragraph (a) of the definition annuitant in subsection 146(1) of the Act out of or under a registered retirement savings plan of the annuitant where, at the time of the payment, the annuitant has certified in prescribed form to the person that

    • (a) a written agreement has been entered into to acquire a home by either

      • (i) the annuitant, or

      • (ii) a disabled person who is related to the annuitant and who is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act;

    • (b) the annuitant intends that the home be used as a principal place of residence in Canada for the annuitant or the disabled person, as the case may be, within one year after its acquisition;

    • (c) the home has not been previously owned by the annuitant, the annuitant’s spouse or common-law partner, the disabled person or the spouse or common-law partner of that person;

    • (d) the annuitant was resident in Canada;

    • (e) the total amount of the payment and all other such payments received by the annuitant in respect of the home at or before the time of the payment does not exceed the dollar amount specified in paragraph (h) of the definition regular eligible amount in subsection 146.01(1) of the Act;

    • (f) except where the annuitant certifies that he or she is a disabled person entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act or certifies that the payment is being withdrawn for the benefit of such a disabled person, the annuitant is a qualifying homebuyer at the time of the certification; and

    • (g) where the annuitant has withdrawn an eligible amount, within the meaning assigned by subsection 146.01(1) of the Act, before the calendar year of the certification, the total of all eligible amounts received by the annuitant before that calendar year does not exceed the total of all amounts previously designated under subsection 146.01(3) of the Act or included in computing the annuitant’s income under subsection 146.01(4) or (5) of the Act.

  • (3.01) For the purpose of subsection (3), the annuitant is a qualifying homebuyer at a particular time unless

    • (a) the annuitant had an owner-occupied home in the period beginning on January 1 of the fourth calendar year preceding the particular time, and ending on the thirty-first day before the particular time; or

    • (b) the annuitant’s spouse or common-law partner, in the period referred to in paragraph (a), had an owner-occupied home that was inhabited by the annuitant at any time during the annuitant’s marriage to the spouse or the annuitant’s common-law partnership with the common-law partner.

  • (3.1) For the purpose of subsection (3.01), an individual shall be considered to have had an owner-occupied home at any time where the home was owned, whether jointly with another person or otherwise, by the individual at that time and inhabited by the individual as the individual’s principal place of residence at that time.

  • (4) For the purposes of subsections (3), (3.01) and (3.1), home means

    • (a) a housing unit;

    • (b) a share of the capital stock of a cooperative housing corporation, where the holder of the share is entitled to possession of a housing unit; and

    • (c) where the context so requires, the housing unit to which a share described in paragraph (b) relates.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/78-449, s. 3;
  • SOR/78-754, s. 1;
  • SOR/89-508, s. 4;
  • SOR/92-176, s. 1;
  • SOR/92-667, s. 3;
  • SOR/93-81, s. 1;
  • SOR/94-238, s. 4;
  • SOR/94-246, s. 1;
  • SOR/94-686, ss. 49(F), 79(F);
  • SOR/97-470, s. 2;
  • SOR/99-19, s. 1;
  • SOR/2001-188, ss. 1, 14;
  • SOR/2001-221, s. 4;
  • 2013, c. 34, s. 376.

Lifelong Learning Plan

  •  (1) No amount shall be deducted or withheld from a payment made by a person during the lifetime of an annuitant referred to in paragraph (a) of the definition annuitant in subsection 146(1) of the Act out of or under a registered retirement savings plan of the annuitant where, at the time of the payment, the annuitant has certified in prescribed form to the person that

    • (a) at the time of certification, the annuitant or the annuitant’s spouse or common-law partner

      • (i) is a full-time student in a qualifying educational program,

      • (ii) is a part-time student in a qualifying educational program and is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act, or

      • (iii) has received notification in writing of his or her entitlement, either absolutely or conditionally, to enrol before March of the year that follows the year of certification as

        • (A) a full-time student in a qualifying educational program, or

        • (B) a part-time student in a qualifying educational program where the annuitant or the annuitant’s spouse or common-law partner is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act;

    • (b) the annuitant is resident in Canada;

    • (c) the total amount of the payment and all other such payments received by the annuitant for a year at or before that time does not exceed $10,000; and

    • (d) the total payments received by the annuitant do not exceed $20,000 throughout the period in which the annuitant participates in the Lifelong Learning Plan.

  • (2) For the purpose of subsection (1), a qualifying educational program means a qualifying educational program at a designated educational institution (as those expressions are defined in subsection 118.6(1) of the Act), except that a reference to a qualifying educational program shall be read

    • (a) without reference to paragraphs (a) and (b) of that definition; and

    • (b) as if the reference to “3 consecutive weeks” in that definition were a reference to “3 consecutive months”.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/99-19, s. 2;
  • SOR/2001-188, s. 14.

Non-Residents

  •  (1) Every person paying to a non-resident person a fee, commission or other amount in respect of services rendered in Canada, of any nature whatever, shall deduct or withhold 15 per cent of such payment.

  • (2) Subsection (1) does not apply to a payment

    • (a) described in the definition remuneration in subsection 100(1);

    • (b) made to a registered non-resident insurer (within the meaning assigned by section 804); or

    • (c) made to an authorized foreign bank in respect of its Canadian banking business.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/94-686, s. 49(F);
  • SOR/2009-302, s. 1.

Fishermen’s Election

  •  (1) Notwithstanding section 100, in this section,

    amount of remuneration

    amount of remuneration paid to a fisherman means

    • (a) where a boat crewed by one or more fishermen engaged in making a catch is owned, together with the gear, by a person, other than a member of the crew, to whom the catch is to be delivered for subsequent sale or other disposition, such portion of the proceeds from the disposition of the catch that is payable to the fisherman in accordance with an arrangement under which the proceeds of disposition of the catch are to be distributed (in this section referred to as a “share arrangement”),

    • (b) where the boat or gear used in making a catch is owned or leased by a fisherman who alone or with another individual engaged under a contract of service makes the catch, such portion of the proceeds from the disposition of the catch that remains after deducting therefrom

      • (i) the amount in respect of any portion of the catch not caught by the fisherman or the other individual,

      • (ii) the amount payable to the other individual under the contract of service, and

      • (iii) the amount of such proportionate share of the catch as is attributable to the expenses of the operation of the boat or its gear pursuant to their share arrangement,

    • (c) where a crew includes the owner of the boat or gear (in this paragraph referred to as the owner) and any other fisherman engaged in making a catch, such portion of the proceeds from the disposition of the catch that remains after deducting therefrom

      • (i) in the case of an owner,

        • (A) the amount in respect of that portion of the catch not caught by the crew or an owner,

        • (B) the aggregate of all amounts each of which is an amount payable to a crew member (other than the owner) pursuant to their share arrangement or to an individual engaged under a contract of service, and

        • (C) the amount of such proportionate share of the catch as is attributable to the expenses of the owner’s operation of the boat or its gear pursuant to their share arrangement, or

      • (ii) in the case of any other crew member, such proceeds from the disposition of the catch as is payable to him in accordance with their share arrangement, or

    • (d) in any other case, the proceeds of disposition of the catch payable to the fisherman; (montant de rémunération)

    catch

    catch means a catch of shell fish, crustaceans, aquatic animals or marine plants caught or taken from any body of water; (pêche)

    crew

    crew means one or more fishermen engaged in making a catch; (équipe)

    fisherman

    fisherman means an individual engaged in making a catch other than under a contract of service. (pêcheur)

  • (2) Every person paying at any time in a taxation year an amount of remuneration to a fisherman who, pursuant to paragraph 153(1)(n) of the Act, has elected for the year in prescribed form in respect of all such amounts shall deduct or withhold 20% of each such amount paid to the fisherman while the election is in force.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/83-692, s. 6;
  • SOR/88-165, s. 31(F).
 
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