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

Elections To Increase Deductions

• 109 (1) Any election under subsection 153(1.2) of the Act shall be made by filing with the person making the payment or class of payments referred to therein (in this section referred to as the payer) the form prescribed by the Minister for that purpose.

• (2) A taxpayer who has made an election in the manner prescribed by subsection (1) may require that the amount deducted or withheld pursuant to that election be varied by filing with the payer the form prescribed by the Minister for that purpose.

• (3) An election made in the manner prescribed by subsection (1) or a variation made pursuant to subsection (2) need not be taken into account by the payer in respect of the first payment to be made to the taxpayer after the election or variation, as the case may be, unless the election or variation, as the case may be, is made within such time, in advance of the payment, as may reasonably be required by the payer.

Prescribed Persons

• 110 (1) The following are prescribed persons for the purposes of subsection 153(1) of the Act:

  • (a) an employer who is required, under subsection 153(1) of the Act and in accordance with paragraph 108(1.1)(b), to remit amounts deducted or withheld; and

  • (b) a person or partnership who, acting on behalf of one or more employers, remits the following amounts in a particular calendar year and whose average monthly remittance, in respect of those amounts, for the second calendar year preceding the particular calendar year, is equal to or greater than $50,000,

    • (i) amounts required to be remitted under subsection 153(1) of the Act and a similar provision of a law of a province that imposes a tax on the income of individuals, where the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1),

    • (ii) amounts required to be remitted under subsection 21(1) of the Canada Pension Plan, and

    • (iii) amounts required to be remitted under subsection 82(1) of the Employment Insurance Act or subsection 53(1) of the Unemployment Insurance Act.

• (2) For the purposes of paragraph (1)(b), the average monthly remittance made by a person or partnership on behalf of all the employers for whom that person or partnership is acting, for the second calendar year preceding the particular calendar year, is the quotient obtained when the aggregate, for that preceding year, of all amounts referred to in subparagraphs (1)(b)(i) to (iii) remitted by the person or partnership on behalf of those employers is divided by the number of months, in that preceding year, for which the person or partnership remitted those amounts.

Deemed Remittance

111 For the purpose of subsection 153(1.02) of the Act

• (a) $25,000 is the amount prescribed for the purpose of the description of A in paragraph 153(1.02)(a) of the Act;

• (b) 10%, or a lower percentage elected by the eligible employer, as defined in subsection 153(1.03), is the percentage prescribed for the purpose of the description of C in paragraph 153(1.02)(b) of the Act; and

• (c) $1,375 is the amount prescribed for the purpose of the description of E in paragraph 153(1.02)(c) of the Act.

PART IIInformation Returns

Remuneration and Benefits

• 200 (1) Subject to subsection (1.1), every person who makes a payment described in subsection 153(1) of the Act (including an amount paid that is described in subparagraph 153(1)(a)(ii) of the Act) shall make an information return in prescribed form in respect of the payment unless an information return in respect of the payment has been made under sections 202, 214, 237 or 238.

• (1.1) Subsection (1) does not apply in respect of

  • (a) an annuity payment in respect of an interest in an annuity contract to which subsection 201(5) applies; or

  • (b) an amount paid by a qualifying non-resident employer to a qualifying non-resident employee that is exempted under subparagraph 153(1)(a)(ii) of the Act if the employer, after reasonable inquiry, has no reason to believe that the employee’s total amount of taxable income earned in Canada under Part I of the Act during the calendar year that includes the time of this payment (including an amount described in paragraph 110(1)(f) of the Act) is more than $10,000.

• (2) Every person who makes a payment as or on account of, or who confers a benefit or allocates an amount that is,

  • (a) a scholarship, fellowship or bursary, or a prize for achievement in a field of endeavour ordinarily carried on by the recipient thereof (other than a prize prescribed by section 7700),

  • (b) a grant to enable the recipient thereof to carry on research or any similar work,

  • (b.1) an amount that is required by paragraph 56(1)(n.1) of the Act to be included in computing a taxpayer’s income,

  • (c) an amount that is required by paragraph 56(1)(r) of the Act to be included in computing a taxpayer’s income,

  • (d) a benefit under regulations made under an appropriation Act providing for a scheme of transitional assistance benefits to persons employed in the production of products to which the Canada-United States Agreement on Automotive Products, signed on January 16, 1965, applies,

  • (e) a benefit described in section 5502,

  • (f) an amount payable to a taxpayer on a periodic basis in respect of the loss of all or any part of his income from an office or employment, pursuant to

    • (i) a sickness or accident insurance plan,

    • (ii) a disability insurance plan, or

    • (iii) an income maintenance insurance plan,

    to or under which his employer has made a contribution,

  • (g) an amount or benefit the value of which is required by paragraph 6(1)(a), (e) or (h) or subsection 6(9) of the Act to be included in computing a taxpayer’s income from an office or employment, other than a payment referred to in subsection (1),

  • (h) a benefit the amount of which is required by virtue of subsection 15(5) of the Act to be included in computing a shareholder’s income,

  • (i) a benefit deemed by subsection 15(9) of the Act to be a benefit conferred on a shareholder by a corporation, or

  • (j) a payment out of a registered education savings plan, other than a refund of payments,

  shall make an information return in prescribed form in respect of such payment or benefit except where subsection (3) or (4) applies with respect to the payment or benefit.

• (3) Where a benefit is included in computing a taxpayer’s income from an office or employment pursuant to paragraph 6(1)(a) or (e) of the Act in respect of an automobile made available to the taxpayer or to a person related to the taxpayer by a person related to the taxpayer’s employer, the employer shall make an information return in prescribed form in respect of the benefit.

• (4) Where a benefit is included in computing the income of a shareholder of a corporation by virtue of subsection 15(5) of the Act in respect of an automobile made available to the shareholder or to a person related to the shareholder by a person related to the corporation, the corporation shall make an information return in prescribed form in respect of the benefit.

• (5) Where a particular qualifying person (within the meaning assigned by subsection 7(7) of the Act) has agreed to sell or issue a security (within the meaning assigned by that subsection) of the particular qualifying person (or of a qualifying person with which it does not deal at arm’s length) to a taxpayer who is an employee of the particular qualifying person (or of a qualifying person with which it does not deal at arm’s length) and the taxpayer has acquired the security under the agreement in circumstances to which subsection 7(8) of the Act applied, each of the particular qualifying person, the qualifying person of which the security is acquired and the qualifying person which is the taxpayer’s employer shall, for the particular taxation year in which the security is acquired, make an information return in the prescribed form in respect of the benefit from employment that the taxpayer would be deemed to have received in the particular taxation year in respect of the acquisition of the security if the Act were read without reference to subsection 7(8) and, for this purpose, an information return made by one of the qualifying persons in respect of the taxpayer’s acquisition of the security is deemed to have been made by each of the qualifying persons.

• (6) Every person who makes a payment as or on account of an amount that is required by subsection 56(6) of the Act to be included in computing a taxpayer’s income shall make an information return in prescribed form in respect of that payment.

Investment Income

• 201 (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).

Payments to Non-Residents

• 202 (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, or an authorized foreign bank, that is deemed under subsection 212(13.2) or paragraph 212(13.3)(a) of the Act to be a person resident in Canada for the purposes of Part XIII of the Act, is 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.