Regulation 105

Subsection 105(1)

Cases

FMC Technologies Co. v. Canada (National Revenue), 2008 DTC 6560, 2008 FC 871

The non-resident parent of the taxpayer ("FMCI") entered into a subcontract with the taxpayer for the performance of the in-Canada portion of its...

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See Also

Beggs v. The Queen, 2016 TCC 11 (Informal Procedure)

Favreau J found that a refusal of CRA to issue a Reg. 105 waiver was not an “assessment” that could be objected to, or appealed to the Tax...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 169 - Subsection 169(1) refusal to grant Reg. 105 waiver not an assessment/remedy in Federal Court 244

Stora Enso Beteiligungen GmbH v. The Queen, 2009 DTC 891, 2009 TCC 282

A German corporation ("SEPPA") engaged a Swedish consulting firm ("McKinsey") to do consulting work for a Canadian affiliate of SEPPA ("SEPH")....

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Hamilton v. The Queen, 2007 DTC 121, 2006 TCC 603

In rejecting an argument of the taxpayer (who had been assessed vicariously under s. 227.1 in respect of the failure of a corporation of which he...

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Weyerhaeuser Company Limited v. The Queen, 2007 TCC 65

In 1998 the Canadian taxpayer paid $14.3 million to non-resident service providers in the ordinary course of its forestry business. The Minister...

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Words and Phrases
for in respect of retainer fee
Locations of other summaries Wordcount
Tax Topics - Statutory Interpretation - Regulations/Statutory Delegation narrow construction of Reg. so as to be intra vires 212
Tax Topics - Statutory Interpretation - Interpretation Act - Section 16 "in respect of" in Regulation read narrowly to conform with "for" in statute 169

Ogden Palladium Services (Canada) Inc. v. The Queen, 2001 DTC 345 (TCC), briefly aff'd 2002 DTC 7378, 2002 FCA 336

A corporation resident in the United States ("Marco") obtained a licence of stadium facilities from the taxpayers and contracted with them for the...

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Words and Phrases
services
Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 227 - Subsection 227(8) - Paragraph 227(8)(a) due diligence defence not established in absence of evidence of professional advice 273

Administrative Policy

16 October 2020 Internal T.I. 2019-0823641I7 - Regulation 105 - requirement to withhold

Canco entered into a contract (“Initial Contract”) with a non-resident corporation (“NR”) for the supply and installation of boilers in...

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Guidance on international income tax issues raised by the COVID-19 crisis, CRA Webpage 31 March 2021

Relief where COVID-19 interruption in processing waiver of Reg. 105 withholding and treaty relief was available

[W]here a Waiver Request in...

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27 November 2017 External T.I. 2017-0731441E5 - Interchange Canada and Business Number

Under the proposed Interchange Agreement with a non-resident corporation (“NRCo”) and a non-resident employee of NRCo, the employee will...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(a) a non-resident corporation is carrying on business in Canada by virtue of being the legal employer of an employee seconded to Canada 179
Tax Topics - Income Tax Act - Section 2 - Subsection 2(3) - Paragraph 2(3)(b) NR corp carrying on business in Canada by virtue of being reimbursed for payroll costs of seconded employee 141
Tax Topics - Income Tax Regulations - Regulation 102 - Subsection 102(1) NR company seconding employee to Canada subject to Reg. 102 withholding requirement but not EI or CPP 173

30 March 2017 Internal T.I. 2016-0636721I7 - Consent fees and withholdings

Canco entered into a “Financial Services Agreement” with a non-resident Advisor who agreed to provide assistance respecting a proposed sale of...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 212 - Subsection 212(4) - Paragraph 212(4)(a) consent fee was not for “advice or direction pertaining to the operation or administration of a company” 161
Tax Topics - Income Tax Act - Section 214 - Subsection 214(15) - Paragraph 214(15)(b) whether consent fee was deemed to be interest under s. 212(15)(b) was moot 126

9 September 2015 External T.I. 2014-0563611E5 F - Call Centre - Location of the services performed

A Canadian company outsourced some of its activities to a non-resident enterprise, so that the non-resident now operates a call centre which...

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12 February 2014 External T.I. 2013-0505511E5 - Cancellation fees paid to a non-resident artist

A fee is paid to a U.S. musician for the cancellation of a scheduled Canadian performance. There may have been rehearsals in Canada. CRA...

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18 May 2012 IFA Roundtable, 2012-0444101C6 - non-resident withholding - services

Respecting whether CRA requires every non-resident partner of a US partnership which has been subject to Reg. 105 withholding to file a Canadian...

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28 November 2011 November CTF Roundtable, 2011-0426591C6 - Deemed services permanent establishment

A US partnership (USFirm) subcontracts part of its contract, to perform consulting services to an arm's length Canadian customer (Canco), to an...

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6 December 2011 External T.I. 2011-0405561E5 - Withholding on payment to non-resident

a Canadian town will pay a deposit to the non-resident agent for a non-resident artist who will perform in a stage production operated by the...

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28 November 2010 CTF Roundtable Q. 9, 2010-0387091C6 - Late filing of T1 returns

Suppose a US-resident taxpayer provides services in Canada for 130 days between 1 October to 28 February, does not anticipate providing further...

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24 August 2010 External T.I. 2010-0354791E5 F - Commission d'un non-résident - 105(1) RIR

A Canadian real estate agent paid a portion of its commission generated on a sale of Canadian real estate (occurring between resident Canadians)...

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13 July 2001 Comfort Letter No. 20010713

After noting, with respect to s. 212(13.3) that "the payor's reasonable belief, or a presumption based on the payee's address, will suffice to...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 212 - Subsection 212(13.3) 58

7 December 1999 1999-0007810 - Application of subsection 17(2)

Although directors fees are salaries and wages for tax purposes and, therefore, are subject to Article XV of the Canada-U.S. Convention rather...

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7 August 1998 Discussion Paper on Proposed Changes to Revenue Canada's Guidelines for Treaty-Based Waivers of Regulation 105 Withholding (Draft)

Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 5 0

22 March 1995 External T.I. 9504635 - WITHHOLDING TAX FOR NON-RESIDENT COMMUTERS (HAA 8019-1)

"If an individual comes to Canada and exercises his duties of employment for a Canadian company and the costs, whether directly or indirectly, are...

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8 July 1991 T.I. (Tax Window, No. 5, p. 22, ¶1339)

Any GST payable on the fee paid to the non-resident is not subject to the withholding tax.

6 April 1990 T.I. (September 1990 Access Letter, ¶1441)

Where the service of a non-resident is the providing of information or advice by way of a telephone or electronic mail hotline and where the...

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1990 Answers Given by Scarborough District Office (May 1990 Access Letter, ¶1200, Q. 6)

A Canadian corporation contracts for repair services to be received from the Canadian subsidiary of a U.S. corporation. The U.S. corporation sends...

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12 November 1986 Press Release together with attachment entitled "Revised Administrative Policy - Non-Resident Withholding Taxes - Re: Services Rendered in Canada"

85 C.R. - Q.54

Where Regulation 105 and Article XVII of the 1980 U.S. Convention are both applicable, the payer is required to withhold 10% on the first $5,000...

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81 C.R. - Q.48

RC will accept any reasonable apportionment as to the portion of a single payment that relates to services performed in Canada.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 216 - Subsection 216(4) Cdn lessee itself the agent 35

IC75-6R2 "Required Withholding from Amounts Paid to Non-Resident Persons Performing Services in Canada"

Articles

Raj Juneja, Pierre Bourgeois, "International Tax Issues That Get in the Way of Doing Business", 2019 Conference Report (Canadian Tax Foundation), 36:1 – 42

Withholding even where subcontracting by NR to Cdn subs

  • A non-resident commonly contracts to provide services to a Canadian resident, and...

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Sabrina Wong, Sania Ilahi, "Tax Implications of Asset Securitizations", 2015 CTF Annual Conference Report

Potential application to Canadian debtors under cross-border securitization (p. 12:26-12:27)

[W]hen trade receivables that arise from services...

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Elaine Marchand, Florie Pellerin-Catellier, "Foreign Service Providers in Canada and Regulation 105", 21 Canadian Current Tax, Vol. 21, No. 2, November 2010, p. 21.

Jules Lewy, "Withholding Requirements for Non-Resident Service Providers in Canada", Tax Notes International, 7 June 2004, p. 1079.

Shannon Baker, Dale Meister, "Non-Residents Rendering Services In Canada: Regulation 105 and Other Issues", International Tax Planning, 1999 Canadian Tax Journal, Vol. 47, No. 5, p. 1321.

Albert Baker, Mark Briggs, "Revenue Canada Provides Increased Guidance on Waivers from Withholding under Regulation 105", International Tax Planning, Vol. VIII, No. 4, p. 596.

Murray, "Computer Software: Canadian Cross-Border Issues", 1993 Conference Report, C. 27

Discussion (at pp. 26-27) of Revenue Canada requirements in order to give a waiver of withholding tax.

Scheuermann, "Income and Commodity Tax Aspects of Acquiring and Exploiting Technology", 1991 Conference Report, c. 45.

Bacal, Lewin, "The Taxation in Canada of Non-resident Performing Artists and Behind-the-Camera Personnel", Canadian Tax Journal, November-December 1986, p. 1287

Includes discussion of changing RC position on whether expense reimbursements are included in the services referred to in Regulation 105(1).

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