Subsection 212(1) - Tax

Subtopics

Cases

Transocean Offshore Ltd. v. Canada, 2005 DTC 5201, 2005 FCA 104

Lump-sum damages received by the non-resident taxpayer from Canadian residents for the repudiation, prior to the slated operational commencement...

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Onus no onus to rebut a factual assmption re something not within the taxpayer's purview 67

The Queen v. Immobiliare Canada Ltd., 77 DTC 5332, [1977] CTC 481 (FCTD)

A Canadian subsidiary ("Place Victoria") of a non-resident corporation ("SGI") decided in 1966 with the approval of SGI and the other...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(b) sale proceeds allocable to expectancy of interest were not interest receipt 198
Tax Topics - Income Tax Act - Section 246 - Subsection 246(1) elimination of Part XIII tax was a s. 246(1) benefit 91
Tax Topics - Income Tax Act - Section 76 105

See Also

Richard Lewin Re: The J.J. Herbert Family Trust #1 v. The Queen, 2011 DTC 1354 [at 1979], 2011 TCC 476, aff'd 2013 DTC 5006 [at 5525], 2012 FCA 279 [but overridden by s. 214(3)(f)(i)(C)]

The taxpayer was a trustee for a family trust, which received a dividend in 2001 of over $2 million. The trust adopted an unconditional...

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Words and Phrases
credit

La Compagnie Minière Québec Cartier v. M.N.R., 84 DTC 1348, [1984] CTC 2408 (TCC)

The taxpayer received demand loans from its U.S. parent which provided for the semi-annual payment of interest but provided that the taxpayer, on...

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Words and Phrases
credit

Administrative Policy

17 May 2022 IFA Roundtable, Q.2

Is CRA is bound for Part XIII tax purposes by the apportionment of a royalty payment between copyright (exempted under s. 212(1)(d)(vi)) and...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) - Subparagraph 212(1)(d)(vi) allocation by arm’s length parties of royalty between copyright and trademark must be “reasonable and realistic” 208

2018 Ruling 2017-0738041R3 - XXXXXXXXXX

Investors subscribe for units of a “Fund”, both situated in and governed by the laws of a redacted non-resident jurisdiction. The units are...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - 101-110 - Section 104 - Subsection 104(1) a foreign collective investment vehicle is fiscally transparent rather than a unit trust 524

14 July 2015 External T.I. 2013-0499621E5 - Paragraph 212(1)(d) and Credited

A royalty charged by a U.S. resident (the "Licensor") to a corporation resident in Canada (the "Taxpayer") was, in lieu of payment by the Taxpayer...

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10 March 2015 Internal T.I. 2015-0574291I7 - XXXXXXXXXX Termination Payment

A property was leased by LP to Canco for use in Canada, with LP's interest subsequently being acquired by Forco. The relevant "Master Agreement"...

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17 May 2012 IFA Roundtable Q. 2, 2012-0444051C6 - 2012 IFA Seminar - Q.2 Reduced Tax Withholdings

In response to a request for confirmation that taxpayers should not be subject to assessment for under-withholding if the applicable forms (NR301,...

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27 August 2012 External T.I. 2011-0416181E5 - US internet publisher - CDN resident advertiser

A US website publisher enters into an arrangement with an independent Canadian-resident promoter (the "Promoter") under which the Promoter will...

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Information Circular IC76-12R8 Applicable rate of part XIII tax on amounts paid or credited to persons in countries with which Canada has a tax convention

Due diligence requirements re payers

¶ 20. If a payer witholds Part XIII tax based on the information the non-resident payee provided on forms...

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21 April 2008 Internal T.I. 2007-0251761I7 F - Billet à payer

Debt owing to the taxpayer following an asset sale provided that interest may be added to the principal of the debt, which is what occurred. The...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(d) addition of unpaid interest to principal did not establish a loan of that interest or a novation of the debt – so that interest on such capitalized interest non-deductible until paid 243
Tax Topics - General Concepts - Payment & Receipt addition of unpaid interest to principal was not a loan of money, nor a payment or crediting of interest 159

Income Tax Technical News, No. 14, "Meaning of 'Credited' for the Purpose of Part XIII Withholding Tax" (CANCELLED).

[T]he mere recording of the payable by way of journal entry, regardless that such amounts are payable on demand and the debtor has the capacity to...

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12 June 1996 External T.I. 9619795 - MEANING OF "PAID OR CREDITED"

"An amount is 'credited' where a resident of Canada has set aside and made unconditionally available to the non-resident creditor an amount due to...

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Words and Phrases
credited

5 January 1996 CTF Roundtable Q. 31, 9523976 - GROSS-UP PAYMENTS

Where a gross-up is paid or credited by a Canadian resident to a non-resident pursuant to a loan agreement that is not otherwise exempt from...

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27 October 1995 External T.I. 9516265 - EPSP - NON-RESIDENT BENEFICIARIES

The deemed receipt of dividends under s. 144(8) does not cause such amounts to be paid or credited for purposes of Part XIII of the Act.

26 April 1995 External T.I. 9502165 - SYSTEMS/OPERATING SOFTWARE

"In a situation where the systems/operating software is sold in a manner that is similar to the sale of shrink-wrap computer software and is sold...

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17 October 1994 External T.I. 9418075 - WITHHOLDING TAX

"Where a financial institution credits the interest earned on a compound interest investment to a non-resident person's investment account...

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15 April 1994 External T.I. 9402905 - WITHOLDING TAX EXEMPTION ON MEDIUM TERM DEBT

Because s. 212(1)(b) is applicable to payments in lieu of payments of interest, a participation payment may be subject to withholding tax...

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91 C.R. - Q.48

Re when an amount is "credited".

19 November 1990 T.I. (Tax Window, Prelim. No. 2, p. 22, ¶1040)

Interest on a debt owed by a Canadian resident to a non-resident is not credited merely by reason of having been accrued and reflected in the...

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July 1990 Memorandum

Distributions of income of a trust from Canadian term deposits or bank accounts to the State of Israel was exempted from withholding tax on the...

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86 C.R. - Q.84

In non-arm's length situations, an amount is "credited" once journal entries have been made to record the amount in the payer's books, if no due...

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84 C.R. - Q.17

RC accepts the Quebec Cartier Mining case. Thus, unless there is an amount at the non-resident's disposal, no amount will be considered to be...

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IC 77-16R4 "Non-Resident Income Tax", para. 5

The word "credits" covers any situation where a resident of Canada has set aside and made unconditionally available to the non-resident creditor...

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Articles

Nakul Kohli, Jiani Qian, "Canadian Residents Earning Income Through Non-Resident US LLCs", Canadian Tax Focus, Vol. 12, No. 1, February 2022, p. 10

Canadian residents generally are better off investing in a portfolio that may include Canadian companies through a partnership rather than an LLC...

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Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 4 213

Steve Suarez, "Canada Extends Transition Period for Treaty-Reduced Nonresident Withholding", Tax Notes International, 27 February 2012

Notes that CRA does not consider preparation of the applicable forms to relieve the payor from potential liability if it emerges that a higher...

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Forms

NR301 "Declaration of Eligibility for Benefits (Reduced Tax) under a Tax Treaty for a Non-resident Taxpayer"

Part 8. Certification and...

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