CRA may be willing to issue a letter confirming that no s. 116 certificate is required because the true vendor is a resident

CRA confirmed that where there is a disposition of taxable Canadian property by a non-resident acting solely as nominee for the beneficial owner, who is a Canadian resident, no s. 116 certificate is required. Some doubt on this point may have arisen after the Olympia Trust case, finding that a purchaser for s. 116 purposes was the trustee of the purchasing RRSP, not the RRSP plan.

CRA also helpfully stated (regarding a Quebec “counter letter” establishing that the true owner is different from that named in the sale agreement):

[I]n certain cases, the CRA could issue a letter to the taxpayer confirming that it is not necessary to withhold tax or to obtain a certificate of compliance under section 116, thereby recognizing the legal effect of a counter letter … .

Neal Armstrong. Summary of 8 October 2021 APFF Roundtable, Q.16 under s. 116(3) and s. 152(4)(a)(i).