CRA confirms T4A slip requirements and the potential for penalties

Regarding a non-profit corporation operating a youth baseball league in Ontario which was paying fees to independent contractors for their services of officiating at the games, CRA noted that its administrative exception from the T4A slip requirement for services fees of less than $500 per year, and for services rendered to individuals by professionals or for repairs or maintenance of an individual’s principal residence, did not apply, so that T4As were required.

CRA indicated that the late-filing penalties under ss. 162(7.01) and (7.02) could apply cumulatively for failure to file the T4As; and also seemed to imply that the $2500 penalty under s. 162(7)(a) could apply (which seems incorrect – it does not apply if s. 162(7.01) or (7.02) applies).

Since the officials were residents, there would be no payor liability to pay their taxes.

Regarding the s. 238 offence, CRA stated:

While the broad wording of subsection 238(1) applies to a failure to file or make a return as and when required, the provincial courts require the CRA to have served the taxpayer with a Notice of Requirement under section 231.2, in respect of which the taxpayer failed to comply.

Neal Armstrong. Summaries of 17 November 2022 External T.I. 2022-0930451E5 under Reg. 200(1), s. 162(7.01) and s. 238(1).