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

Regulations are current to 2014-09-15 and last amended on 2014-06-19. Previous Versions

Investment Income

  •  (1) Every person who makes a payment to a resident of Canada as or on account of

    • (a) a dividend or an amount deemed by the Act to be a dividend (other than a dividend deemed to have been paid to a person under any of subsections 84(1) to (4) of the Act where, pursuant to subsection 84(8) of the Act, those subsections do not apply to deem the dividend to have been received by the person),

    • (b) interest (other than the portion of the interest to which any of subsections (4) to (4.2) applies)

      • (i) on a fully registered bond or debenture,

      • (ii) in respect of

        • (A) money on loan to,

        • (B) money on deposit with, or

        • (C) property of any kind deposited or placed with,

        a corporation, association, organization or institution,

      • (iii) in respect of an account with an investment dealer or broker,

      • (iv) paid by an insurer in connection with an insurance policy or an annuity contract, or

      • (v) on an amount owing in respect of compensation for property expropriated,

    • (c) a royalty payment in respect of the use of a work or invention or a right to take natural resources,

    • (d) a payment referred to in subsection 16(1) of the Act that can reasonably be regarded as being in part a payment of interest or other payment of an income nature and in part a payment of a capital nature, where the payment is made by a corporation, association, organization or institution,

    • (e) an amount paid from a person’s NISA Fund No. 2, or

    • (f) an amount that is required by subsection 148.1(3) of the Act to be added in computing a person’s income for a taxation year

    shall make an information return in prescribed form in respect of the portion of such payment for which an information return has not previously been made under this section.

  • (2) Every person who receives as nominee or agent for a person resident in Canada a payment to which subsection (1) applies shall make an information return in prescribed form in respect of such payment.

  • (3) Where a person negotiates a bearer coupon, warrant or cheque representing interest or dividends referred to in subsection 234(1) of the Act for another person resident in Canada and the name of the beneficial owner of the interest or dividends is not disclosed on an ownership certificate completed pursuant to that subsection, the person negotiating the coupon, warrant or cheque, as the case may be, shall make an information return in prescribed form in respect of the payment received.

  • (4) A person or partnership that is indebted in a calendar year under a debt obligation in respect of which subsection 12(4) of the Act and paragraph (1)(b) apply with respect to a taxpayer shall make an information return in prescribed form in respect of the amount that would, if the year were a taxation year of the taxpayer, be included as interest in respect of the debt obligation in computing the taxpayer’s income for the year.

  • (4.1) A person or partnership that is indebted in a calendar year under an indexed debt obligation in respect of which paragraph (1)(b) applies shall, for each taxpayer who holds an interest in the debt obligation at any time in the year, make an information return in prescribed form in respect of the amount that would, if the year were a taxation year of the taxpayer, be included as interest in respect of the debt obligation in computing the taxpayer’s income for the year.

  • (4.2) Where, at any time in a calendar year, a person or partnership holds, as nominee or agent for a taxpayer resident in Canada, an interest in a debt obligation referred to in paragraph (1)(b) that is

    • (a) an obligation in respect of which subsection 12(4) of the Act applies with respect to the taxpayer, or

    • (b) an indexed debt obligation,

    that person or partnership shall make an information return in prescribed form in respect of the amount that would, if the year were a taxation year of the taxpayer, be included as interest in respect of the debt obligation in computing the taxpayer’s income for the year.

  • (5) Every insurer, within the meaning assigned by paragraph 148(10)(a) of the Act, who is a party to a life insurance policy in respect of which an amount is to be included in computing a taxpayer’s income under subsection 12.2(1) or (5) of the Act shall make an information return in prescribed form in respect of that amount.

  • (5.1) Subsection (5) applies to an insurer in respect of an LIA policy in respect of a calendar year only if

    • (a) the insurer is notified in writing  —  before the end of the calendar year and by, or on behalf, of the policyholder  —  that the policy is an LIA policy; or

    • (b) it is reasonable to conclude that the insurer knew, or ought to have known, before the end of the calendar year, that the policy is an LIA policy.

  • (6) Every person who makes a payment to, or acts as a nominee or agent for, an individual resident in Canada in respect of the disposition or redemption of a debt obligation in bearer form shall make an information return in prescribed form in respect of the transaction indicating the proceeds of disposition or the redemption amount and such other information as may be required by the prescribed form.

  • (7) For the purposes of subsection (6), “debt obligation in bearer form” means any debt obligation in bearer form other than

    • (a) a debt obligation that is redeemed for the amount for which the debt obligation was issued;

    • (b) a debt obligation described in paragraph 7000(1)(b); and

    • (c) a coupon, warrant or cheque referred to in subsection 207(1).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts and regulations. SOR/79-939, s. 2;
  • SOR/83-866, s. 2;
  • SOR/83-867, s. 2;
  • SOR/86-426, s. 1;
  • SOR/86-1092, s. 1(F);
  • SOR/88-165, s. 31(F);
  • SOR/88-554, s. 1;
  • SOR/91-123, s. 1;
  • SOR/93-527, s. 1;
  • SOR/94-686, ss. 1(F), 78(F), 79(F);
  • SOR/96-283, s. 1;
  • SOR/96-435, s. 1;
  • SOR/2010-93, s. 1;
  • 2013, c. 40, s. 96.