4 July 2007 External T.I. 2007-0222981E5 - Information Returns under Regulation 237

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: Whether an information return pursuant to section 237 of the Income Tax Regulations is required for a reimbursement or allowance paid to an individual for expenses incurred in attending a conference as a guest expert.

Position: Question of Fact, but likely not.

Reasons: Where a guest speaker is not remunerated for services, but merely has expenses reimbursed, he or she is likely not a "payee" and no information return is required.

Vishnu Jadoonath
Department of Foreign Affairs and International Trade
111 Sussex Drive								2007-022298
Ottawa ON   K1N 1J1							J. Eckler
(416) 952-8930
July 4, 2007

Dear Mr. Jadoonath:

Re: Reporting of Guest Experts' Conference Travel Expenses

We are writing in reply to your letter of February 2, 2007, wherein you asked whether reimbursements and allowances paid by the Department of Foreign Affairs and International Trade ("DFAIT") to non-federal government employee guest experts in respect of conference travel expenses require the filing of a tax information slip. You also asked whether a SIN or business number is required to process the payment of such expenses.

The situation outlined in your letter appears to relate to a factual one, involving a specific taxpayer. It is not this Directorate's practice to comment on proposed transactions involving specific taxpayers other than in the form of an advanced income tax ruling. For more information about how to obtain a ruling, please refer to Information Circular 70-6R5, "Advanced Income Tax Rulings", dated May 17, 2002. This Information Circular and other CRA publications can be accessed on the internet at http://www.cra-arc.gc.ca. Should your situation involve a specific taxpayer and a completed transaction, you should submit all relevant facts and documentation to the appropriate Tax Services Office ("TSO") for their views. A list of TSOs is available on the "Contact Us" page of the CRA website. Although we cannot comment on your specific situation, we are prepared to provide the following general comments, which may be of assistance.

Our Comments

With respect to the filing of information returns, we note that subsection 200(1) of the Income Tax Regulations (the "Regulations") provides as follows:

Every person who makes a payment described in subsection 153(1) of the Act ... 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. (emphasis added) Among the various types of payments described by subsection 153(1) of the Income Tax Act (the "Act") is paragraph 153(1)(g), which imposes the reporting requirement on every person paying at any time in a taxation year fees, commissions or other amounts for services. Where this provision applies, a T4A is the appropriate reporting slip.

However, in the case of amounts paid by a federal government department, we note that subsection 237(2) of the Regulations provides as follows:

A federal body that pays or credits an amount to a payee shall file an information return in prescribed form in respect of the amount on or before March 31 in each year in respect of the preceding calendar year.

For purposes of subsection 237(2) of the Regulations, a "payee" means a person or partnership to whom an amount is paid or credited in respect of services rendered, by or on behalf of the person or the partnership. Whether an amount paid is in respect of a contract for services is a question of fact that can only be determined by reviewing the facts in the particular circumstances. Where it is determined that a federal body and a payee have entered into a contract for services, any amounts paid to the payee for such services, whether directly or indirectly, must be reported in a T1204 information return pursuant to subsections 200(1) and 237(2) of the Regulations.

However, where an individual receives no remuneration for services provided and is simply reimbursed or paid an allowance for actual and reasonable accommodation, travel, meal, or other expenses, it is our view that the payor would not be required to file an information return in respect of such payments. It follows that for purposes of the Act, a payor would not require a guest expert's SIN or business number.

We trust that these comments will be of assistance.

Yours truly,

Renée Shields
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch