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

Regulations are current to 2014-10-15 and last amended on 2014-06-19. Previous Versions

Reduction of Certain Amounts to be Deducted or Withheld

  •  (1) Subject to subsection (2), where a non-resident person (in this section referred to as the “payee”) has filed with the Minister the payee’s required statement for the year, the amount otherwise required by subsections 215(1) to (3) of the Act to be deducted or withheld from any qualifying payment paid or credited by a person resident in Canada (in this section referred to as the “payer”) to the payee in the year and after the required statement for the year was so filed is hereby reduced by the amount determined in accordance with the following rules:

    • (a) determine the amount by which

      • (i) the amount that would, if the payee does not make an election in respect of the year under section 217 of the Act, be the tax payable by the payee under Part XIII of the Act on the aggregate of the amounts estimated by him in his required statement for the year pursuant to paragraph (a) of the definition “required statement” in subsection (4),

      exceeds

      • (ii) the amount that would, if the payee makes the election referred to in subparagraph (i), be the tax payable (on the assumption that no portion of the payee’s income for the year was income earned in the year in a province) by the payee under Part I of the Act on his estimated taxable income calculated by him in his required statement for the year pursuant to paragraph (b) of the definition “required statement” in subsection (4),

    • (b) determine the percentage that the amount determined under paragraph (a) is of the aggregate of the amounts estimated by him in his required statement for the year pursuant to paragraph (a) of the definition “required statement” in subsection (4),

    • (c) where the determination of a percentage under paragraph (b) results in a fraction, disregard the fraction for the purposes of paragraph (d),

    • (d) multiply the percentage determined under paragraph (b) by the amount of the qualifying payment,

    and the product obtained under paragraph (d) is the amount by which the amount required to be deducted or withheld is reduced.

  • (2) Subsection (1) does not apply to reduce the amount to be deducted or withheld from a qualifying payment if, after the qualifying payment has been paid or credited by the payer, the aggregate of all qualifying payments that the payer has paid or credited to the payee in the year would exceed the amount estimated, in respect of that payer, by the payee in his required statement for the year pursuant to paragraph (a) of the definition “required statement” in subsection (4).

  • (3) Where a payee has filed with the Minister a written notice indicating that certain information or estimates in the payee’s required statement for the year are incorrect and setting out the correct information or estimates that should be substituted therefor or where the Minister is satisfied that certain information or estimates in a payee’s required statement for the year are incorrect and that the Minister has the correct information or estimates that should be substituted therefor, for the purposes of making the calculations in subsection (1) with respect to any qualifying payment paid or credited to the payee after the time when he has filed that notice or after the time when the Minister is so satisfied, as the case may be, the incorrect information or estimates shall be disregarded and the required statement for the year shall be deemed to contain only the correct information or estimates.

  • (4) In this section,

    “qualifying payment”

    “qualifying payment” in relation to a non-resident person means any amount

    • (a) paid or credited, or to be paid or credited, to him as, on account or in lieu of payment of, or in satisfaction of, any amount described in paragraph 212(1)(f) or (h) or in any of paragraphs 212(1)(j), (k), (l), (m) or (q) of the Act, and

    • (b) on which tax under Part XIII of the Act is, or would be, but for an election by him under section 217 of the Act, payable by him; (paiement admissible)

    “required statement”

    “required statement” of a payee for a taxation year means a written statement signed by him that contains, in respect of the payee,

    • (a) the name and address of each payer of a qualifying payment in the year and, in respect of each such payer, an estimate by the payee of the aggregate of such qualifying payments, and

    • (b) a calculation by him of his estimated taxable income earned in Canada for the year, on the assumption that he makes the election in respect of the year under section 217 of the Act, and such information as may be necessary for the purpose of estimating such income. (état exigé)

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/81-656, s. 3;
  • SOR/94-686, s. 50(F).