11 July 2013 Internal T.I. 2013-0482171I7 - Judge's Income Tax

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Principal Issues: Questions about income tax for judges in Canada.

Position: General advice provided.

Reasons: There is no interpretive issue to be resolved.

DATE July 11, 2013

TO Legislative Policy Directorate FROM Income Tax Rulings
International Relations Office Directorate
Legislative Policy and Regulatory Business and Employment Affairs Branch Division
Kathryn McCarthy

Attention: Valery Kiyogoma FILE 2013-048217

SUBJECT: Income Tax for Judges

We are writing in response to an information request you received from XXXXXXXXXX, concerning the taxation of judges under the Income Tax Act (Canada) ("Act"). The request was forwarded to you from the Department of Justice, who received the request on February 5, 2013, from XXXXXXXXXX.

Our Comments

Generally under section 5 of the Act, a taxpayer's income for a taxation year from an office or employment is the salary, wages, and other remuneration received by the taxpayer in the year. Further when an individual is appointed in a representative capacity and a fixed per diem rate is paid to that individual, it is our view that such an amount would also be taxable as income from an office or employment, but under paragraph 6(1)(c) of the Act. Hereafter, "Remuneration" shall include such section 5 and paragraph 6(1)(c) amounts. Where an individual earns Remuneration, and is required to incur expenses in connection with that Remuneration, he or she is limited to the deductions under section 8 of the Income Tax Act. For more information consult Guide T4044, Employment Expenses, which is available on the Canada Revenue Agency ("CRA") Web site.

Under paragraph 153(1)(a) of the Act, every person paying Remuneration at any time in a calendar year shall deduct or withhold from the payment the amount determined in accordance with prescribed rules and shall, at the prescribed time, remit that amount to the Receiver General on account of the employee's or officer's income tax for the year. The prescribed rules are in Parts I and II of the Income Tax Regulations (Canada) ("Regulations").

A payer must, therefore, make the required income tax withholdings from a judge's Remuneration and remit the amount to the Receiver General. For information on the Canada Pension Plan ("CPP") and Employment Insurance ("EI") withholdings, you should contact the CPP and EI Rulings area of the CRA (see www.cra-arc.gc.ca/tx/hm/menu-eng.html.) For the frequency of remittances, see Guide T4001, Employers' Guide - Payroll Deduction and Remittances, which is also available on the CRA's Web site. In addition, under subsection 200(1) of the Regulations, Form T4 SUM, Summary of Remuneration Paid, and Form T4, Statement of Remuneration Paid, are required to be filed by every person paying Remuneration to a judge. The filing deadline is generally the last day of February following the calendar year to which the information return applies. More information is available at www.cra.gc.ca/slips.

We trust our comments will be of assistance to you.

Yours truly,

Nerill Thomas-Wilkinson, CPA, CA
Manager
for Director
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch