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

Full Document:  

Regulations are current to 2020-09-09 and last amended on 2020-07-27. Previous Versions

PART IIInformation Returns (continued)

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 an association, corporation, institution, organization, partnership or trust,

        • (B) money on deposit with an association, corporation, institution, organization, partnership or trust, or

        • (C) property deposited or placed with an association, corporation, institution, organization, partnership or trust,

      • (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,

    • (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, or

    • (g) the portion of the price for which a debt obligation was assigned or otherwise transferred that is deemed by subsection 20(14.2) of the Act to be interest that accrued on the debt obligation to which the transferee has become entitled to for a period commencing before the time of the transfer and ending at that particular time that is not payable until after that particular time if the payment is made by a person that is a financial company (whether acting as principal or as agent for the transferee) for the purposes of section 211

    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 (other than an amount to which paragraph (1)(g) applies) 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
  • 2016, c. 12, s. 74
  • 2018, c. 12, s. 42

Payments to Non-Residents

  •  (1) In addition to any other return required by the Act or these Regulations, every person resident in Canada shall make an information return in prescribed form in respect of any amount that the person pays or credits, or is deemed under Part I, XIII or XIII.2 of the Act to pay or credit, to a non-resident person as, on account or in lieu of payment of, or in satisfaction of,

    • (a) a management or administration fee or charge;

    • (b) interest;

    • (c) income of or from an estate or trust;

    • (d) rent, royalty or a similar payment referred to in paragraph 212(1)(d) of the Act, including any payment described in any of subparagraphs 212(1)(d)(i) to (viii) of the Act;

    • (e) a timber royalty as described in paragraph 212(1)(e) of the Act;

    • (f) an assessable distribution, as defined in subsection 218.3(1) of the Act;

    • (g) a dividend, including a patronage dividend as described in paragraph 212(1) (g) of the Act; or

    • (h) a payment for a right in or to the use of

      • (i) a motion picture film, or

      • (ii) a film or video tape for use in connection with television.

    • (i) [Repealed, SOR/88-165, s. 1]

  • (1.1) Every person who pays or credits an amount, or provides a benefit to or on behalf of a person who is either a non-resident individual who is an actor or that is a corporation related to such an individual, for the provision in Canada of acting services of the actor in a film or video production, shall, in addition to any other return required by the Act or these Regulations, make an information return in prescribed form in respect of such payment, credit or benefit.

  • (2) Every person resident in Canada who pays or credits, or is deemed by Part I or Part XIII of the Act to pay or credit, to a non-resident person an amount as, on account or in lieu of payment of, or in satisfaction of,

    • (a) a payment of a superannuation or pension benefit,

    • (b) a payment of any allowance or benefit described in any of subparagraphs 56(1)(a)(ii) to (vi) of the Act,

    • (c) a payment by a trustee under a registered supplementary unemployment benefit plan,

    • (d) a payment out of or under a registered retirement savings plan or a plan referred to in subsection 146(12) of the Act as an amended plan,

    • (e) a payment under a deferred profit sharing plan or a plan referred to in subsection 147(15) of the Act as a revoked plan,

    • (f) a payment under an income-averaging annuity contract, any proceeds of the surrender, cancellation, redemption, sale or other disposition of an income-averaging annuity contract, or any amount deemed by subsection 61.1(1) of the Act to have been received by the non-resident person as proceeds of the disposition of an income-averaging annuity contract,

    • (g) an annuity payment not described in any other paragraph of this subsection or subsection (1),

    • (h) a payment to which paragraph 212(1)(p) of the Act applies,

    • (i) a payment out of or under a registered retirement income fund,

    • (j) a payment that is or that would be, if paragraph 212(1)(r) of the Act were read without reference to subparagraph 212(1)(r)(ii), a payment described in that paragraph in respect of a registered education savings plan,

    • (k) a grant under a program prescribed for the purposes of paragraph 212(1)(s) of the Act,

    • (l) a payment described in paragraph 212(1)(j) of the Act in respect of a retirement compensation arrangement,

    • (m) a payment described in paragraph 212(1)(v) or (x) of the Act, or

    • (n) a payment described in paragraph 212(1)(r.1) of the Act,

    shall, in addition to any other return required by the Act or these Regulations, make an information return in prescribed form in respect of such amount.

  • (2.1) Every person resident in Canada who pays an amount to a non-resident person from a NISA Fund No. 2 shall, in addition to any other return required by the Act or these Regulations, make an information return in prescribed form in respect of the amount.

  • (3) Every person who is paid or credited with an amount referred to in subsection (1), (2) or (2.1) for or on behalf of a non-resident person shall make an information return in prescribed form in respect of the amount.

  • (4) A non-resident person who is deemed, under subsection 212(13) of the Act, to be a person resident in Canada for the purposes of section 212 of the Act shall be deemed, in the same circumstances, to be a person resident in Canada for the purposes of subsections (1) and (2).

  • (5) A partnership that is deemed, under paragraph 212(13.1)(a) of the Act, to be a person resident in Canada for the purposes of Part XIII of the Act shall be deemed, in the same circumstances, to be a person resident in Canada for the purposes of subsections (1) and (2).

  • (6) A non-resident person who is deemed, under subsection 212(13.2) of the Act, to be a person resident in Canada for the purposes of Part XIII of the Act shall be deemed, in the same circumstances, to be a person resident in Canada for the purposes of subsections (1) and (2).

  • (6.1) A trust that is deemed by subsection 94(3) of the Act to be resident in Canada for a taxation year for the purposes of computing its income, is deemed, in respect of amounts (other than an exempt amount as defined in subsection 94(1) of the Act) paid or credited by it, to be a person resident in Canada for the taxation year for the purposes of subsections (1) and (2).

  • (7) Subject to subsection (8), an information return required under this section shall be filed on or before March 31 and shall be in respect of the preceding calendar year.

  • (8) Where an amount referred to in subsection (1) or (2) is income of or from an estate or trust, the information return required under this section in respect thereof shall be filed within 90 days from the end of the taxation year of the estate or trust in which the amount was paid or credited and shall be in respect of that taxation year.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • SOR/79-487, s. 1
  • SOR/80-382, ss. 3, 4
  • SOR/81-936, s. 2
  • SOR/83-866, s. 3
  • SOR/86-522, s. 1
  • SOR/88-165, ss. 1, 31(F)
  • SOR/88-395, s. 1
  • SOR/93-527, s. 2
  • SOR/94-686, ss. 50(F), 78(F)
  • SOR/99-22, s. 4
  • SOR/2000-13, s. 1
  • SOR/2001-216, s. 10(F)
  • SOR/2003-5, s. 2
  • SOR/2005-123, s. 1
  • 2009, c. 2, s. 83
  • SOR/2011-188, s. 2
  • 2013, c. 34, s. 27
  • 2014, c. 20, s. 34
  • SOR/2016-30, s. 4
 
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