20 October 2003 External T.I. 2003-0034785 - SOCIAL INSURANCE NUMBER

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.

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.

Principal Issues:

Is a self-employed individual required to provide their social insurance number to a slip preparer? Is a T4A required to be issued?

Position TAKEN:

General information provided.

Reasons:

Inquiries regarding T4A reporting should be directed to the Trust Accounts Division at the local TSO.

XXXXXXXXXX  	T. Young, CA
		2003-003478
October 20, 2003

Dear XXXXXXXXXX:

Re: Social Insurance Number ("SIN") and Information Reporting

We are writing in response to the letter from XXXXXXXXXX dated August 14, 2003, concerning whether a self-employed individual is required to provide the person's "employer" with his or her SIN. We also acknowledge our conversation (Young/XXXXXXXXXX) of October 14, 2003. XXXXXXXXXX letter also asked whether the "employer" is required to issue a T4 or T4A to the self-employed person.

Written confirmation of the tax implications inherent in particular transactions is given by this Directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R5, Advance Income Tax Rulings, dated May 17, 2002. However, we are prepared to provide the following comments, which may be of assistance to you.

Section 200 of the Income Tax Regulations states,

Every person who makes a payment described in subsection 153(1) of the Act (other than an annuity payment in respect of an interest in an annuity contract to which subsection 201(5) applies) 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.

Paragraph 153(1)(g) of the Act includes the payment of fees, commissions or other amounts for services, other than amounts described in subsection 212(5.1).

For more information on the Payer's responsibilities with respect to issuing T4A slips, refer to Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip And Summary Form 2002. For assistance determining whether a T4A is required in respect of any particular payment or series of payments on which you need clarification, please contact the Trust Accounts Division of your local Tax Services Office.

Individuals who reside or are employed in Canada are required to give their SIN, upon request, to their information slip preparers. For more information, refer Information Circular IC-82-2R2, Social Insurance Number Legislation that Relates to the Preparation of Information Slips.

The documents referred to above may be found on our web site at www.ccra.gc.ca. We trust our comments will be of assistance to you.

Yours truly,

John Oulton, CA
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch