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 individuals and businesses are required to provide their SIN or BN to an entity required to complete an information slip.
Position: Yes.
Reasons: Subsection 237(1.1) requires individuals and business to provide their SIN or BN to any person required to make an information slip under the Act. Under subsection 237(2) of the Act the information slip preparer is required to make a reasonable effort to obtain the SIN or BN. Under subsection 162(6), individuals or businesses failing to provide their SIN or BN to the information slip preparer are liable to a penalty.
XXXXXXXXXX
2011-041925
Gillian Godson
Attention: XXXXXXXXXX , 613-957-8981
Revenue Accounting
November 14, 2011
Dear XXXXXXXXXX :
Re: Provision of Information by Taxpayers
This is in response to your inquiry for a technical interpretation regarding the provision of certain information by taxpayers. The issue is whether individuals and businesses are required to provide their social insurance number ("SIN") or business number ("BN") respectively, to enable the preparation of information slips, in this case T5's.
Subsection 201(1) of the Income Tax Regulations requires a person making payments to investors holding equity instruments of that person to file an information return, which consists of T5 slips and the related T5 summary. To that end, subsection 237(1.1) of the Income Tax Act (the "Act") requires such individuals and businesses to provide their SIN or BN to that person.
Pursuant to subsection 237(2) of the Act, information return preparers must make a reasonable effort to obtain the SIN or BN. Individuals or businesses failing to provide their SIN or BN to a person required to make an information return are liable to a penalty of $100 for each failure, under subsection 162(6) of the Act.
For additional information, please refer to Information Circular IC 82-2R2, Social Insurance Number Legislation that Relates to the Preparation of Information Slips, which is available on the CRA website at http://www.cra-arc.gc.ca.
Should you have any questions or require additional information, please do not hesitate to contact Gillian Godson at the number provided at the outset.
Yours truly,
B.J. Skulski
Manager
Insolvency and Administrative Law Section
Income Tax Rulings Directorate
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