Section 153

Subsection 153(1) - Withholding

Administrative Policy

18 March 2008 External T.I. 2008-0265861E5 F - Programme d'aide financière d'urgence ("PAFU")

CRA noted, regarding the Quebec PAFU [Emergency Financial Assistance Program] that the Ministry of Employment and Social Solidarity was not...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 56 - Subsection 56(1) - Paragraph 56(1)(u) s. 56(1)(u) applied to emergency assistance not based on an income test 173
Tax Topics - Statutory Interpretation - French and English Version English version of s. 56(1)(u), as the broader of the two, was to be preferred 59

Paragraph 153(1)(a)

Cases

Canada c. Roll, 2001 DTC 5055 (FCA)

Given that he had made payments of remuneration to employees as a bare trustee for the corporation and the taxpayer, who was an employee of a...

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Cana Construction Co. Ltd. v. The Queen, 96 DTC 6370, [1996] 3 CTC 11 (FCA)

The Court found no manifest error in the Tax Court's finding that the appellant had undertaken to pay employees of its subcontractor and withhold...

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Mollenhauer Ltd. v. The Queen, 92 DTC 6398, [1992] 2 CTC 121 (FCTD)

When a subcontractor of the plaintiff ("Aprok") was unable to meet its payroll, Aprok arranged with the plaintiff, which was indebted to Aprok, to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 227 - Subsection 227(9) 83

The Queen v. Coopers & Lybrand Ltd., 80 DTC 6281, [1980] CTC 367 (FCA)

The payment by a privately-appointed receiver-manager of the unpaid wages of the employees of the debtor company (1) was the payment of "salary or...

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Dauphin Plains Credit Union Ltd. v. Xyloid Industries Ltd., 80 DTC 6123, [1980] CTC 247, [1980] 1 S.C.R. 1182

A receiver-manager of a company who pays unpaid wages to the company's employees comes within the words "every person paying salary or wages."

R. v. O'Dare, 79 DTC 5243, [1979] CTC 407 (B.C. Co. Ct.)

"[I]f Section 153 does not explicitly impress monies deducted pursuant to it with a trust, it does so by necessary implication."

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 238 - Subsection 238(2) 85

See Also

Dare Human Resources Corporation v. Ontario (Revenue), 2019 ONCA 549

Two Ottawa placement agencies supplied temporary workers to the Public Service of Canada and federal agencies. When these clients put out a call...

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Words and Phrases
employer
Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 100 - Subsection 100(1) - Employer placement agencies were the workers’ employer 308

Marshall v. The Queen, 2012 DTC 1068 [at 2815], 2012 TCC 21

The taxpayer was the sole shareholder and director of Internorth Limited ("IL") and a majority shareholder and director of Internorth Construction...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Onus 193

Central Springs Limited v. The Queen, 2010 DTC 1258 [at 4409], 2010 TCC 543 (Informal Procedure)

The taxpayer and Humbly Enterprises were related corporations. When Humbly was experiencing financial difficulties and was in arrears for source...

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Marché Lambert et Frères Inc. c. La Reine, 2008 DTC 3815, 2007 TCC 466

In response to a submission of the taxpayer that the taxpayer's payroll service provider ("Paie Maître"), and not the taxpayer itself, was liable...

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Suspended Power Lift Service Inc. v. The Queen, 2007 DTC 1505, 2007 TCC 519 (Informal Procedure)

Webb J. found that where an amount has been deducted from compensation as income tax source deductions or employee premiums under the Canada...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) 68

McLeod Masonry (1979) Ltd. v. The Queen, 2000 DTC 2238 (TCC)

Lamarre Proulx found (at p. 2243) that even if evidence, that a portion of the remuneration paid to employees of the taxpayer represented...

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Manke v. The Queen, 98 DTC 1969, [1999] 1 CTC 2186 (TCC)

In finding that the taxpayer was entitled to credits for amounts allegedly withheld but not remitted, McArthur TCJ. stated (at p. 1974):

"It does...

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The Queen v. Ursel Constructors Ltd., 96 DTC 1496 (TCC)

There was no evidence that any withholdings had been made by the corporate taxpayer to individual employees: no segregated payroll accounts were...

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Laxton v. MNR, 89 D.T.C. 629, [1989] 2 CTC 2407 (TCC)

The taxpayer were the director of a corporation (the "Corporation") which was the general partner of a limited partnership, and he also was a...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 227.1 - Subsection 227.1(1) GP responsible for LP source deductions 211

Lalonde, 82 DTC 1772, [1982] CTC 2749 (T.R.B.)

The taxpayer's employer paid less than the full wages owing to the taxpayer after assuring him that the difference represented source deductions,...

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Clark v. Oceanic Contractors Inc., [1982] BTC 417, [1983] 1 All E.R. 133 (HL)

nS.204(1) of the Income and Corporation Taxes Act 1970 stated baldly that "income tax shall ... be deducted or repaid by the person making...

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Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Territorial Limits presumption against application to non-subjects 57

Administrative Policy

Frequently asked questions - Canada emergency wage subsidy (CEWS) CRA Webpage 24 September 2021

[Q3-9] One group entity can maintain the agency payroll accounts for non-CEWS purposes.

Salary or wages may be paid under a cost-sharing...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(9) - Paragraph 125.7(9)(a) 150
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Entity - Paragraph (c) - Subparagraph (c)(ii) 236
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(4) - Paragraph 125.7(4)(d) 725
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(4) - Paragraph 125.7(4)(a) 401
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(4) - Paragraph 125.7(4)(b) 367
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Employee 637
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Remuneration 474
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(2) - Element B 245
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Revenue 1009
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Entity - Paragraph (f) 79
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Eligible Entity - Paragraph (a) 236
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Qualifying Entity - Paragraph (d) - Subparagraph (d)(ii) 170
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(9) - Paragraph 125.7(9)(b) 379
Tax Topics - Income Tax Act - Section 87 - Subsection 87(2) - Paragraph 87(2)(g.5) 198
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(4.1) 194
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Top-Up Percentage 333
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Base Percentage 175
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Service - Paragraph (c) 78
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Baseline Remuneration 267
Tax Topics - Income Tax Act - Section 241 - Subsection 241(3.5) 76
Tax Topics - General Concepts - Agency 92
Tax Topics - Income Tax Act - Section 125.7 - Subsection 125.7(1) - Executive Compensation Repayment Amount 102

2020 IFA-YIN Seminar on COVID-19 Guidelines, Q.3 and Q.4

If an individual is not ordinarily resident in Canada, but is in Canada due to Travel Restrictions or otherwise due to public safety concerns...

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25 February 2016 CBA Roundtable, Q. 7

A group of professionals (e.g., dentists), each operating as sole proprietors, hire common staff members (e.g., receptionists, file clerks, etc.) ...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 96 arrangement for sharing employees not a partnership in Quebec or ROC/profit-sharing arrangement required 234
Tax Topics - General Concepts - Agency dentist handles source deductions and payroll as agent for colleagues 127
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Service - Paragraph (c) dentists jointly employ staff so as to avoid GST 296
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Taxable Supply dentists jointly employ staff so as to avoid GST 203

4 December 2014 Internal T.I. 2014-0531251I7 - Directors' Liability

A limited partnership, which shortly will be declared bankrupt, failed to remit source deductions. Would the general partner, which is a...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 323 - Subsection 323(3) directors of GP potentially liable for GST remittance failures of LP 136
Tax Topics - Income Tax Act - Section 227.1 - Subsection 227.1(1) directors of GP potentially liable for source deduction and GST remittance failures of LP 137

6 November 2014 External T.I. 2014-0530991E5 - Liability for the failure to withhold

A corporation failed to withhold the required amounts based on taxable benefits received by Canadian employees. Is it or its directors liable for...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 227 - Subsection 227(8.4) no employer liability for undeducted income tax 89

2 October 2014 External T.I. 2013-0508651E5 - Services provided by non-residents

Is a taxpayer (CanCo), who hires a USCo to provide services and equipment in Canada of its employees in Canada, liable for source deductions for...

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26 September 2014 External T.I. 2014-0531441E5 - Unfunded LTD plan payment to non-resident employee

A Canadian resident employee, after qualifying for benefits under the unfunded long term disability plan ("LTD Plan") of the Canadian resident...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 115 - Subsection 115(2) - Paragraph 115(2)(c) employee long-term disability payments: remuneration under ITA; pension under Cda-U.S. Convention 214
Tax Topics - Treaties - Income Tax Conventions - Article 18 employee long-term disability payments: remuneration under ITA; pension under Cda-U.S. Convention 259

20 December 2013 External T.I. 2013-0505471E5 - Director's Fees

Were fees received by members of a council of a professional college, who also had professional corporations, subject to withholding? Before...

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14 November 2013 External T.I. 2013-0500641E5 - Subsections 7(6) and 153(1) - Withholding

Under an arrangement described in s. 7(6), does obligation to withhold tax rests with the corporation/employer or the s. 7(6) trust? CRA...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 7 - Subsection 7(6) employer rather than s. 7(6) trust withholds 197

6 July 2012 Internal T.I. 2012-0440741I7 - stock option benefit derived by US resident

USCo, which is a qualifying person for purposes of the Canada-US Income Tax Convention and is a wholly-owned subsidiary of a Canadian public...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 115 - Subsection 115(1) - Paragraph 115(1)(a) - Subparagraph 115(1)(a)(i) 195
Tax Topics - Treaties - Income Tax Conventions - Article 15 U.S. subs qualifies as payer of (therefore exempt) stock option benefit/domestic v. Treaty method 404

15 June 2011 Internal T.I. 2011-0405501I7 F - Withholding - stock option benefits

The employer's withholding obligations apply even where the employee's only remuneration is in the form of benefits.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 153 - Subsection 153(1.1) it is up to employer to find a solution for need to withhold from s. 7 benefits 184

3 November 2010 Internal T.I. 2010-0383561I7 - Payroll withholdings by non-resident employer

A US-resident corporation which employs a Canadian-resident individual whose services are performed solely in the US nonetheless is required to...

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18 July 2007 External T.I. 2007-0242081E5 - Payroll Withholdings by Non-Resident Employer

In response to a question as to whether a company resident in the U.S. is required to obtain a payroll number and withhold payroll deductions from...

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8 February 2005 Interpretation Case No. 52141

Respecting the issuance of stock options to an independent contractor as additional compensation for services rendered, CRA stated:

[W]here a...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (d) subsequent exercise of stock option by independent contractor entailed exchange of financial services 103
Tax Topics - General Concepts - Fair Market Value - Options in-the-money stock option valuation 41

31 January 2005 External T.I. 2004-0091301E5 F - Déductions à la source-avantage autre qu'en argent

A French corporation agreed with a Canadian corporation of which it was a 50% shareholder, that it would pay the salary of an intern who come to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 153 - Subsection 153(1.1) no source deductions required where free accommodation was the intern's only benefit 91

30 January 2004 Internal T.I. 2003-0037191I7 F - Fabrication /sous-traitants/frais de gestion

Individuals performed services only for Cco but (for administrative ease) were paid by a sister of Cco (Bco), so that Bco was responsible for...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 5202 - Cost of Labour - Paragraph (a) cost of labour included amounts paid to a sister company that paid the employees on behalf of the manufacturer 205
Tax Topics - Income Tax Regulations - Regulation 5202 - Cost of Labour - Paragraph (b) - Subparagraph (b)(iii) tasks performed by subcontractors were not normally performed by employees 106
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(a) - Income-Producing Purpose partial disallowance of salaries of taxpayer where it was not fully reimbursed by the recipient of their services 111

29 January 2004 External T.I. 2003-0049111E5 F - Retenue d'impôt - Régime visé à l'alinéa 6801d) d

CCRA indicated that an amount deferred under Reg. 6801(d) plan would not be subject to withholding tax under s. 153 until the employer makes payment.

25 September 2003 Internal T.I. 2003-0032837 F - Market Maker: Reserve Account for Losses

A firm (ABC), that employed market makers on a commission basis, maintained a separate account for each employee into which a portion of the...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Payment & Receipt constructive receipt by employee where reserve loss account (funded out of commissions) is transferred from old brokerage employer to new brokerage employer 230

20 December 2002 External T.I. 2002-0159365 F - REMUNERATION NON MONETAIRE

Regarding the applicability of source deductions to non-monetary remuneration, CCRA stated:

[T]he CCRA will not require source deductions for...

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5 December 2002 External T.I. 2002-0163135 F - Source Deductions - Nominal Partnership

Two individuals (A and B), although carrying on separate businesses, had B cover the payroll for the employees of both businesses, so that an...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Agency paymaster under payroll agency arrangements could fulfill the source deduction and T4 reporting requirements of the principal 99

10 January 2001 External T.I. 2000-0056135 - REPORTING TAXABLE BENEFITS

The government of Canada retains a third party services provider (the "Agent") to provide relocation services to government employeees on its...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Agency source deductions made by agent on employer's behalf 48

28 May 1997 External T.I. 9710705 - PAYROLL DEDUCTIONS AND TIPS

"Where the restaurant patron settles his bills with a major credit card and includes an amount as gratuity on the card or where the restaurant...

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1995 Tax Executives Institute Round Table, Q. 5 (5M08860E)

No withholding is required on employer contributions to an EPSP and on distributions from an EPSP to the employee.

1 September 1994 External T.I. 9420255 - EPSP -OBLIGATIONS TO WITHHOLD TAX

No withholding is required where an employer makes a contribution to an employee profit sharing plan.

28 April 1993 Income Tax Severed Letter 9312026 - Retiring Allowance Employment Standards Act

Where an employee who is laid off but wants to retain rights to be recalled requests that amounts that otherwise would be paid to him as severance...

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4 February 1993 Memorandum (Tax Window, No. 29, p.18, ¶2425)

Payments made by an employer to an employee profit sharing plan as defined in s. 144(1) are "salary or wages or other remuneration" and,...

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28 January 1993 T.I. (Tax Window, No. 28, p. 9, ¶2403)

A Canadian-resident loan-out corporation will be required to make deductions at source on any salaries paid to the artist-employee even though the...

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3 October 1991 T.I. (Tax Window, No. 10, p. 23, ¶1494)

S.153(1)(a) refers to every person who has employees in Canada irrespective whether the person carries on business in Canada.

Articles

Gergely Hegedus, Keith Hennel, "Employer Source Deductions: No Ordinary Tax Debts", Canadian Tax Focus, Vol. 9, No. 4, November 2019, p.5

Minister cannot assess for failure not to withhold (p. 5)

The minister may assess employers for failing to deduct or withhold and remit source...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 167 - Subsection 167(5) 106

Paragraph 153(1)(c)

Administrative Policy

30 November 1991 Round Table (4M0462), Q. 12.1 - Payment of Certain Amounts into an R.R.S.P. (C.T.O. September 1994)

"No source deduction is required to be made on amounts received by a taxpayer in a court judgment for unfair dismissal that are identified as...

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80 C.R. - Q.10

Where an employer makes a payment into court which the employee may or may not accept, the employer is responsible for withholding.

If an amount...

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Paragraph 153(1)(g)

Administrative Policy

7 October 2016 APFF Roundtable Q. 1B, 2016-0652761C6 F - T4A filing

ITA s. 153(1)(g) and Reg. 200(2) require the issuance of T4As for most services received. At an earlier juncture, CRA was studying its T4A...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 200 - Subsection 200(1) no expanded relief from the broad T4A reporting requirements 252

30 October 2012 Ontario CTF Roundtable Q. 10, 2012-0462961C6 - 2012 Ont CTF Q10 - Executors' Fees and Withholding

After stating that an estate would be required to issue a T4A to an executor who was earning his fees as business income rather than income from...

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13 June 2003 TI

Where a lawyer, who is a member of a professional partnership, is a director of a corporation, the director's fees paid to him will not be subject...

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RC4157 Rev. 12 "Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary"

Box 048 - Fees for services

Enter any fees or other amounts paid for services. Do not include GST/HST paid to the recipient for these...

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Forms

Paragraph 153(1)(j)

Administrative Policy

13 September 2005 External T.I. 2005-0148831E5 F - REÉR - retenues à la source

Regarding the withdrawal of the shares of a private company from the annuitant’s RRSP, CRA stated:

There is no specific provision in the Act to...

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7 October 2011 Roundtable, 2011-0408251C6 F - REER, règle d'attribution, retenues à la source

The taxpayer in Charrier v. Quebec (2010 EXP-2783) contributed $5,970 to his spouse's RRSP in 2005, which he deducted, and a year later the amount...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 146 - Subsection 146(8.3) s. 146(8.3) applied since not yet separated at time of withdrawal even though withholding for account of spouse 316

Paragraph 153(1)(q)

Administrative Policy

7 February 2018 Internal T.I. 2017-0711961I7 - Withholding on RCA payment to partnership

A retirement compensation arrangement (RCA) consists of a supplementary retirement plan (for one employee) that has developed surplus that the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 103 - Subsection 103(6) withdrawal of RCA surplus was not a lump sum payment 170
Tax Topics - Income Tax Regulations - Regulation 106 - Subsection 106(1) members of partnership were respective payers of RCA withdrawal 165

Subsection 153(1.01) - Withholding — stock option benefits

Administrative Policy

7 October 2011 Roundtable, 2011-0411951C6 F - Retenues à la source - options d'achat d'actions

In response to questions as to the treatment of an issuance of a net number of shares to an exercising employee so as to permit the employer to...

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Other locations for this summary
Tax Topics - Income Tax Act - Section 153 - Subsection 153(1.01)
Locations of other summaries Wordcount
Tax Topics - Income Tax Regulations - Regulation 6204 - Subsection 6204(1) - Paragraph 6204(1)(a) conferral on employer of share repurchase right to set off against source deduction obligation engages the exclusion 65
Tax Topics - Income Tax Regulations - Regulation 6204 - Subsection 6204(1) - Paragraph 6204(1)(b) loss of prescribed share status where employer granted redemption right to cover s. 153(1.01) withholding obligations 116

Articles

Barbara Worndl, Ron Choudhury, "New Stock Option Benefit Withholding Provisions - a Critical Look", Taxation of Executive Compensation and Retirement, 2011, p. 1386.

Paragraph 153(1.01)(b)

Administrative Policy

3 January 2018 Internal T.I. 2017-0709811I7 - Withholding on CCPC stock option benefit

The Directorate noted that upon exercise, s. 7(1.1) provides that the s. 7(1)(a) benefit was deemed to not be received by the employee until the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 7 - Subsection 7(1.1) no withholding if benefit deferred under s. 7(1.1) 60

Articles

Dov Begun, "Equity Based Compensation and Stock Options", 2017 Annual CTF Conference draft paper

No withholding on s. 7(1.1) exercise (p.14)

[O]n the exercise of a CCPC option that complies with and is eligible for the deferral under...

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Subsection 153(1.02)

Administrative Policy

Frequently Asked Questions – Temporary Wage Subsidy for Employers 30 March 2020 CRA Webpage

1. Overview of wage-subsidy COVID-19 response

The Temporary Wage Subsidy for Employers is a three-month measure that will allow eligible employers...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) COVID-19 wage subsidy includible in income 127

Subsection 153(1.1) - Undue hardship

Cases

Allstaff Inc. v. Canada (Attorney General), 2021 FC 52

The taxpayer was a temporary employment agency that sought relief under ITA ss. 153(1.1) and 220(3.1) regarding interest and penalties on...

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Locations of other summaries Wordcount
Tax Topics - Excise Tax Act - Section 152 - Subsection 152(1) GST/HST remittance obligations are triggered by invoicing 117

Administrative Policy

Guidance on international income tax issues raised by the COVID-19 crisis, CRA Webpage 31 March 2021

CRA referred to the travel restrictions imposed by governments or businesses in response to the COVID-19 crisis as a safety measure for their...

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26 August 2015 External T.I. 2015-0564171E5 F - Paiements d'un RPAC à un Indien

Respecting a question on the possibility of reducing income tax source deductions where payment is made to a member of a pooled registered pension...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 81 - Subsection 81(1) - Paragraph 81(1)(a) pension distribution to Indian included in income under s. 56(1)(z.3) before excluded under s. 81(1)(a) 114

15 June 2011 Internal T.I. 2011-0405501I7 F - Withholding - stock option benefits

Following the introduction of s. 153(1.31), the employer's withholding obligations respecting stock option benefits will apply even where the...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) withholding obligation extends to stock option benefits 19

6 May 2011 External T.I. 2011-0399491E5 F - Withholding - stock option benefits

Respecting the situation where the sole remuneration of an employee in 2011 was a stock option benefit, or the cash remuneration in the year was...

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13 October 2010 External T.I. 2010-0366801E5 F - Impôt minimum à reporter/réduction d'impôt

Can alternative minimum tax balance be carried forward to be taken into account in an s. 153(1.1) application? CRA responded:

To reduce tax...

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Income Tax Technical News, No. 41, 23 December 2009 Under "Stock Benefit Withholding Requirements"

31 January 2005 External T.I. 2004-0091301E5 F - Déductions à la source-avantage autre qu'en argent

Regarding a situation where the only benefit received by an intern (still paid by salary by a French employer) from a Canadian corporation to whom...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 153 - Subsection 153(1) - Paragraph 153(1)(a) no source deductions required where a non-cash benefit is the sole remuneration 116

6 July 1995 External T.I. 9512605 - LSVCC AND TAX CREDIT AND RRSP

"If satisfactory documentation exists to confirm entitlement, virtually any credit or deduction may form the basis for a request for a reduction...

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1994 A.P.F.F. Round Table, Q. 21

Where part of a retiring allowance paid to an employee some time subsequent to his discharge must be used to repay unemployment insurance benefits...

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93 CPTJ - Q.9

RC recognizes that requiring withholding from the employee's cash remuneration on the basis of a substantial non-cash benefit can create hardship...

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24 February 1992 Memorandum (Tax Window, No. 13, p. 22, ¶1613)

RC's general policy is to grant a waiver of withholding if reasonable evidence is provided that the total tax withheld at statutory rates will...

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91 C.R. - Q.47

RC encourages employers to make withholdings from employees' cash remuneration to the extent possible, without imposing actual hardship, when an...

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91 C.R. - Q.68

Re criteria for granting a waiver.

11 April 1991 T.I. (Tax Window, No. 2, p. 22, ¶1200)

RC will waive the requirement that tax be withheld from remuneration to non-resident employees if the exemption in ss.115(2)(e)(i)(A) or (B) is...

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88 C.R. - Q.74

While it is not RC's policy to insist on withholding when non-cash benefits are the only income of the employee from the employer, it is expected...

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88 C.R. - Q.75

If a non-commission employee is required to travel by his employer and receives a travel allowance, and wishes relief in respect of allowable...

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Articles

Anu Nijhawan, "Source Withholdings: Non Resident Employees 'Visiting' Canada", Taxation of Executive Compensation and Retirement, Vol. 15, No. 9, May 2004, p. 412.

Subsection 153(1.3) - Split-pension amount

See Also

Coopers & Lybrand Limitéé v. MNR, 94 D.T.C 1626, [1994] 2 CTC 2244 (TCC)

The appellant took possession on November 4, 1981 of the business of a debtor and, with the banks' authorization, paid the net amount of the...

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Plaskett & Associates Limited v. Minister of National Revenue, 91 DTC 162, [1991] 1 CTC 2162 (TCC)

Sobier TCJ. accepted a submission that an interim receiver was acting only as a watchman or conservator, and could not make business decisions....

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Subsection 153(1.4) - Exception — remittance to designated financial institution

Cases

CIBC v. The Queen, 95 DTC 5367, [1995] 2 CTC 51 (FCTD)

Although an individual "monitor", which the CIBC appointed to spend substantial time at the saw mill operations of a corporation that had begun to...

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See Also

The Toronto-Dominion Bank v. The Queen, 94 DTC 1261, [1994] 1 CTC 2615 (TCC)

Following default by a corporation, ("Mark Creek") in the repayment of indebtedness to a Bank, the Bank commenced foreclosure proceedings and,...

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Subsection 153(3) - Deemed effect of deduction

Cases

Fraser v. R., 97 DTC 5292, [1997] 3 C.T.C. 3 (FCA)

While the taxpayer was off work from an injury, his employer continued to pay him his full net salary and remitted source deductions based on the...

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Subsection 153(4) - Unclaimed dividends, interest and proceeds

Administrative Policy

5 July 1996 Headquarters Letter File No. 11690-9

Discussion of four examples respecting the acquisition by a bookstore of used books.

7 September 1994 External T.I. 9415545 - UNCLAIMED INTEREST & DIVIDENDS

The reference to a "taxation year" and "year" in the preamble to s. 153(4) refers to the taxation year of the broker/security dealer and not to...

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10 May 1990 T.I. (October 1990 Access Letter, ¶1480)

The postamble to s. 153(4) does not permit a taxpayer to elect to include the unpaid amount in his income.

88 C.R. - Q.58

S.153(4) will not apply to an issuing corporation in respect of amounts that it has not paid.

Subsection 153(6)

Articles

Joint Committee, "Guidance on International Income Tax Issues raised by the COVID-19", 11 June 2020 Joint Committee Submission

The Guidance on international income tax issues raised by the COVID-19 crisis provided administrative relief for employees who exceeded the...

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Qualifying non-resident employee

Articles

Dov Begun, "Foreign Employers Sending Non-Canadian-Resident Employees to Canada to Work on short-Term Projects May Benefit from Proposed Changes Introduced in the 2015 Federal Budget and Clarified on July 31, 2015", Tax Management International Journal, 2015, p. 634

2015 Budget proposal (pp. 634-5)

In an attempt to address the issue of an exemption from the withholding obligation being available only in the...

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Subsection 153(7)

Articles

PWC, "Non-Resident Employer Certification Program: Compliance Reviews and other Updates", PWC Tax Insights – Global Mobility Services, Issue 2016-47, 12 October 2016

Scope of CRA review requests to qualifying non-resident employers (QNERs) (p.2)

In early September 2016, the CRA started issuing review letters to...

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PWC, "New Non-Resident Employer Certification program: Payroll withholding relief for foreign employers with frequent business travellers to Canada", Tax Insights, Issue 2016-02, 15 January 2016

CRA transitional relief (p. 2)

Notably, as part of the transition to this new employer certification program, the CRA will consider granting...

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Forms

RC473 Application for Non-Resident Employer Certification 12 January 2016

Application first

Applications should be received at least 30 days...

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