Income Tax Act

Marginal note:Electronic funds transfer

• 244.2 (1) Every reporting entity shall file with the Minister an information return in prescribed form in respect of

  • (a) the sending out of Canada, at the request of a client, of an electronic funds transfer of $10,000 or more in the course of a single transaction; or

  • (b) the receipt from outside Canada of an electronic funds transfer, sent at the request of a client, of $10,000 or more in the course of a single transaction.

• Marginal note:Transfer within Canada

  (2) For greater certainty and subject to subsection (3), subsection (1) does not apply to a reporting entity in respect of an electronic funds transfer if the entity

  • (a) sends the transfer to an entity in Canada, even if the final recipient is outside Canada; or

  • (b) receives the transfer from an entity in Canada, even if the initial sender is outside Canada.

• Marginal note:Intermediary

  (3) Subsection (1) applies to a reporting entity in respect of an electronic funds transfer if the entity

  • (a) orders another reporting entity to send, at the request of a client, the transfer out of Canada, unless it provides the other reporting entity with the name and address of the client; or

  • (b) receives the transfer for a beneficiary in Canada from another reporting entity in circumstances where the initial sender is outside Canada, unless the transfer contains the name and address of the beneficiary.

• Marginal note:Transfer conducted by agent

  (4) If a particular reporting entity is an agent of or is authorized to act on behalf of another reporting entity in respect of an electronic funds transfer, subsection (1) applies, in respect of the transfer, to the other reporting entity and not to the particular reporting entity.

• Marginal note:Entities outside Canada

  (5) Subsection (1) does not apply to an entity described in paragraph (b) of the definition money services business in respect of the services it provides to entities outside Canada.