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 amount paid for rent is considered an amount described in subsection 153(1) for purposes of subsection 200(1) of the Income Tax Regulations (the “Regulations”).
Position: Likely not.
Reasons: An amount paid for rent is not considered a fee, commission or other amount for services.
XXXXXXXXXX 2016-067522
J. Ouimet, CPA, CA
March 31, 2017
Dear XXXXXXXXXX
Subject: T4A Reporting Requirements
This is in response to your letter dated November 9, 2016, requesting our views regarding the reporting requirements with respect to Form T4A Statement of Pension, Retirement, Annuity, and Other Income (“T4A slip”).
In particular, you ask whether an amount paid to an individual as rent for the use of a facility is considered an amount paid as a fee, commission or other amount for services and thus required to be reported on a T4A slip.
Briefly, you describe in your letter, a situation where an organization uses independent contractors, to provide certain services (i.e. teaching and supervising). Moreover, you advise that one independent contractor is a co-owner of a property and the organization pays the contractor an amount as rent for the use of the property. In this regard, you ask whether the amount paid to the contractor as rent for the use of the property would be required to be reported on an information slip (i.e., T4A slip). It is our understanding that all parties described in your letter are residents of Canada.
Our Comments
This technical interpretation provides general comments about the provisions of the Income Tax Act and related legislation. It does not confirm the income tax treatment of a particular situation involving a specific taxpayer but is intended to assist you in making that determination. The income tax treatment of particular transactions proposed by a specific taxpayer will only be confirmed by this Directorate in the context of an advance income tax ruling request submitted in the manner set out in Information Circular IC 70-6R7, Advance Income Tax Rulings.
In general terms, subsection 200(1) of the Income Tax Regulations (the “Regulations”) provides that every person who makes a payment described in subsection 153(1) of the Income Tax Act (the “Act”) shall file an information return in prescribed form in respect of such payment. The payments described in subsection 153(1) of the Act include a payment for fees, commissions or other amounts for services pursuant to paragraph 153(1)(g) of the Act.
Whether an amount paid is a fee, commission or other amount for services is generally a question of fact that can only be determined after a review of all of the relevant facts and circumstances. However, in our view, an amount paid as rent for the use of a property would normally not be considered a fee, commission or other amount for services described in paragraph 153(1)(g) of the Act.
Accordingly, in the situation you described, it is our view that there would be no T4A reporting requirement under subsection 200(1) of the Regulations with respect to the amount paid as rent.
We trust our comments will be of assistance.
Yours truly,
Bob Naufal
Manager
Administrative Law Section
International Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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