Income Tax Regulations (C.R.C., c. 945)

Deductions not Required

• 104 (1) [Repealed, SOR/2001-221, s. 4]

• (2) No amount shall be deducted or withheld from a payment in accordance with any of sections 102 to 103.1 in respect of an employee who was neither employed nor resident in Canada at the time of payment except in respect of

  • (a) remuneration described in subparagraph 115(2)(e)(i) of the Act that is paid to a non-resident person who has in the year, or had in any previous year, ceased to be resident in Canada; or

  • (b) remuneration reasonably attributable to the duties of any office or employment performed or to be performed in Canada by the non-resident person.

• (3) No amount shall be deducted or withheld from a payment made by a person during the lifetime of an annuitant referred to in paragraph (a) of the definition annuitant in subsection 146(1) of the Act out of or under a registered retirement savings plan of the annuitant where, at the time of the payment, the annuitant has certified in prescribed form to the person that

  • (a) a written agreement has been entered into to acquire a home by either

    • (i) the annuitant, or

    • (ii) a disabled person who is related to the annuitant and who is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act;

  • (b) the annuitant intends that the home be used as a principal place of residence in Canada for the annuitant or the disabled person, as the case may be, within one year after its acquisition;

  • (c) the home has not been previously owned by the annuitant, the annuitant’s spouse or common-law partner, the disabled person or the spouse or common-law partner of that person;

  • (d) the annuitant was resident in Canada;

  • (e) the total amount of the payment and all other such payments received by the annuitant in respect of the home at or before the time of the payment does not exceed the dollar amount specified in paragraph (h) of the definition regular eligible amount in subsection 146.01(1) of the Act;

  • (f) except where the annuitant certifies that he or she is a disabled person entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act or certifies that the payment is being withdrawn for the benefit of such a disabled person, the annuitant is a qualifying homebuyer at the time of the certification; and

  • (g) where the annuitant has withdrawn an eligible amount, within the meaning assigned by subsection 146.01(1) of the Act, before the calendar year of the certification, the total of all eligible amounts received by the annuitant before that calendar year does not exceed the total of all amounts previously designated under subsection 146.01(3) of the Act or included in computing the annuitant’s income under subsection 146.01(4) or (5) of the Act.

• (3.01) For the purpose of subsection (3), the annuitant is a qualifying homebuyer at a particular time unless

  • (a) the annuitant had an owner-occupied home in the period beginning on January 1 of the fourth calendar year preceding the particular time, and ending on the thirty-first day before the particular time; or

  • (b) the annuitant’s spouse or common-law partner, in the period referred to in paragraph (a), had an owner-occupied home that was inhabited by the annuitant at any time during the annuitant’s marriage to the spouse or the annuitant’s common-law partnership with the common-law partner.

• (3.1) For the purpose of subsection (3.01), an individual shall be considered to have had an owner-occupied home at any time where the home was owned, whether jointly with another person or otherwise, by the individual at that time and inhabited by the individual as the individual’s principal place of residence at that time.

• (4) For the purposes of subsections (3), (3.01) and (3.1), home means

  • (a) a housing unit;

  • (b) a share of the capital stock of a cooperative housing corporation, where the holder of the share is entitled to possession of a housing unit; and

  • (c) where the context so requires, the housing unit to which a share described in paragraph (b) relates.

Lifelong Learning Plan

• 104.1 (1) No amount shall be deducted or withheld from a payment made by a person during the lifetime of an annuitant referred to in paragraph (a) of the definition annuitant in subsection 146(1) of the Act out of or under a registered retirement savings plan of the annuitant where, at the time of the payment, the annuitant has certified in prescribed form to the person that

  • (a) at the time of certification, the annuitant or the annuitant’s spouse or common-law partner

    • (i) is a full-time student in a qualifying educational program,

    • (ii) is a part-time student in a qualifying educational program and is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act, or

    • (iii) has received notification in writing of his or her entitlement, either absolutely or conditionally, to enrol before March of the year that follows the year of certification as

      • (A) a full-time student in a qualifying educational program, or

      • (B) a part-time student in a qualifying educational program where the annuitant or the annuitant’s spouse or common-law partner is entitled to the credit for mental or physical impairment under subsection 118.3(1) of the Act;

  • (b) the annuitant is resident in Canada;

  • (c) the total amount of the payment and all other such payments received by the annuitant for a year at or before that time does not exceed $10,000; and

  • (d) the total payments received by the annuitant do not exceed $20,000 throughout the period in which the annuitant participates in the Lifelong Learning Plan.

• (2) For the purpose of subsection (1), a qualifying educational program means a qualifying educational program at a designated educational institution (as those expressions are defined in subsection 118.6(1) of the Act), except that a reference to a qualifying educational program shall be read

  • (a) without reference to paragraphs (a) and (b) of that definition; and

  • (b) as if the reference to “3 consecutive weeks” in that definition were a reference to “3 consecutive months”.

Non-Residents

• 105 (1) Every person paying to a non-resident person a fee, commission or other amount in respect of services rendered in Canada, of any nature whatever, shall deduct or withhold 15 per cent of such payment.

• (2) Subsection (1) does not apply to a payment

  • (a) described in the definition remuneration in subsection 100(1);

  • (b) made to a registered non-resident insurer (within the meaning assigned by section 804); or

  • (c) made to an authorized foreign bank in respect of its Canadian banking business.

Fishermen’s Election

• 105.1 (1) Notwithstanding section 100, in this section,

  amount of remuneration

  amount of remuneration paid to a fisherman means

  • (a) where a boat crewed by one or more fishermen engaged in making a catch is owned, together with the gear, by a person, other than a member of the crew, to whom the catch is to be delivered for subsequent sale or other disposition, such portion of the proceeds from the disposition of the catch that is payable to the fisherman in accordance with an arrangement under which the proceeds of disposition of the catch are to be distributed (in this section referred to as a “share arrangement”),

  • (b) where the boat or gear used in making a catch is owned or leased by a fisherman who alone or with another individual engaged under a contract of service makes the catch, such portion of the proceeds from the disposition of the catch that remains after deducting therefrom

    • (i) the amount in respect of any portion of the catch not caught by the fisherman or the other individual,

    • (ii) the amount payable to the other individual under the contract of service, and

    • (iii) the amount of such proportionate share of the catch as is attributable to the expenses of the operation of the boat or its gear pursuant to their share arrangement,

  • (c) where a crew includes the owner of the boat or gear (in this paragraph referred to as the owner) and any other fisherman engaged in making a catch, such portion of the proceeds from the disposition of the catch that remains after deducting therefrom

    • (i) in the case of an owner,

      • (A) the amount in respect of that portion of the catch not caught by the crew or an owner,

      • (B) the aggregate of all amounts each of which is an amount payable to a crew member (other than the owner) pursuant to their share arrangement or to an individual engaged under a contract of service, and

      • (C) the amount of such proportionate share of the catch as is attributable to the expenses of the owner’s operation of the boat or its gear pursuant to their share arrangement, or

    • (ii) in the case of any other crew member, such proceeds from the disposition of the catch as is payable to him in accordance with their share arrangement, or

  • (d) in any other case, the proceeds of disposition of the catch payable to the fisherman; (montant de rémunération)

  catch

  catch means a catch of shell fish, crustaceans, aquatic animals or marine plants caught or taken from any body of water; (pêche)

  crew

  crew means one or more fishermen engaged in making a catch; (équipe)

  fisherman

  fisherman means an individual engaged in making a catch other than under a contract of service. (pêcheur)

• (2) Every person paying at any time in a taxation year an amount of remuneration to a fisherman who, pursuant to paragraph 153(1)(n) of the Act, has elected for the year in prescribed form in respect of all such amounts shall deduct or withhold 20% of each such amount paid to the fisherman while the election is in force.

Variations in Deductions

• 106 (1) Where an employer makes a payment of remuneration to an employee in his taxation year

  • (a) for a period for which no provision is made in Schedule I, or

  • (b) for a pay period referred to in Schedule I in an amount that is greater than any amount provided for therein,

  • (c) and (d) [Repealed, SOR/2001-221, s. 5]

  the amount to be deducted or withheld by the employer from any such payment is that proportion of the payment that the tax that may reasonably be expected to be payable under the Act by the employee with respect to the aggregate of all remuneration that may reasonably be expected to be paid by the employer to the employee in respect of that taxation year is of such aggregate.

• (2) and (3) [Repealed, SOR/84-913, s. 3]

Employee’s Returns

• 107 (1) The return required to be filed by an employee under subsection 227(2) of the Act shall be filed by the employee with the employer when the employee commences employment with that employer and a new return shall be filed thereunder within 7 days after the date on which a change occurs that may reasonably be expected to result in a change in the employee’s personal credits for the year.

• (2) Notwithstanding subsection (1), where, in a year, an employee receives payments in respect of commissions or in respect of commissions and salary or wages, and the employee elects to file a prescribed form for the year in addition to the return referred to in that subsection, that form shall be filed with the employee’s continuing employer on or before January 31 of that year and, where applicable, within one month after the employee commences employment with a new employer or within one month after the date on which a change occurs that may reasonably be expected to result in a substantial change in the employee’s estimated total remuneration for the year or estimated deductions for the year.

• (3) Where, in a taxation year, an employee has elected to file the prescribed form referred to in subsection (2) and has filed such form with his employer, the employee may at any time thereafter in the year revoke that election and such revocation is effective from the date that he notifies his employer in writing of his intention.

Remittances to Receiver General

• 108 (1) Subject to subsections (1.1) to (1.13), amounts deducted or withheld in a month under subsection 153(1) of the Act shall be remitted to the Receiver General on or before the 15th day of the following month.

• (1.1) Subject to subsection (1.11), where the average monthly withholding amount of an employer for the second calendar year preceding a particular calendar year is

  • (a) equal to or greater than $25,000 and less than $100,000, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made in a month in the particular calendar year by the employer shall be remitted to the Receiver General

    • (i) in respect of payments made before the 16th day of the month, on or before the 25th day of the month, and

    • (ii) in respect of payments made after the 15th day of the month, on or before the 10th day of the following month; or

  • (b) equal to or greater than $100,000, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made in a month in the particular calendar year by the employer shall be remitted to the Receiver General on or before the third day, not including a Saturday or holiday, after the end of the following periods in which the payments were made,

    • (i) the period beginning on the first day and ending on the 7th day of the month,

    • (ii) the period beginning on the 8th day and ending on the 14th day of the month,

    • (iii) the period beginning on the 15th day and ending on the 21st day of the month, and

    • (iv) the period beginning on the 22nd day and ending on the last day of the month.

• (1.11) Where an employer referred to in paragraph (1.1)(a) or (b) would otherwise be required to remit in accordance with that paragraph the amounts withheld or deducted under subsection 153(1) of the Act in respect of a particular calendar year, the employer may elect to remit those amounts

  • (a) in accordance with subsection (1), if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is less than $25,000 and the employer has advised the Minister that the employer has so elected; or

  • (b) if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is equal to or greater than $25,000 and less than $100,000 and the employer has advised the Minister that the employer has so elected,

    • (i) in respect of payments made before the 16th day of a month in the particular calendar year, on or before the 25th day of the month, and

    • (ii) in respect of payments made after the 15th day of a month in particular calendar year, on or before the 10th day of the following month.

• (1.12) If at any time

  • (a) the average monthly withholding amount in respect of an employer for either the first or the second calendar year before the particular calendar year that includes that time is less than $3,000,

  • (b) throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 153(1) of the Act, under subsection 21(1) of the Canada Pension Plan, under subsection 82(1) of the Employment Insurance Act or under Part IX of the Excise Tax Act, and

  • (c) throughout the 12-month period before that time, the employer has filed all returns each of which was required to be filed under this Act or Part IX of the Excise Tax Act on or before the day on or before which those returns were required to be filed under those Acts,

  all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made by the employer in a month that ends after that time and that is in the particular calendar year may be remitted to the Receiver General

  • (d) in respect of such payments made in January, February and March of the particular calendar year, on or before the 15th day of April of the particular year,

  • (e) in respect of such payments made in April, May and June of the particular calendar year, on or before the 15th day of July of the particular year,

  • (f) in respect of such payments made in July, August and September of the particular calendar year, on or before the 15th day of October of the particular year, and

  • (g) in respect of such payments made in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular year.

• (1.13) If an employer is a new employer throughout a particular month in a particular calendar year, all amounts deducted or withheld from payments described in the definition remuneration in subsection 100(1) that are made by the employer in the month may be remitted to the Receiver General

  • (a) in respect of such payments made in January, February and March of the particular calendar year, on or before the 15th day of April of the particular calendar year;

  • (b) in respect of such payments made in April, May and June of the particular calendar year, on or before the 15th day of July of the particular calendar year;

  • (c) in respect of such payments made in July, August and September of the particular calendar year, on or before the 15th day of October of the particular calendar year; and

  • (d) in respect of such payments made in October, November and December of the particular calendar year, on or before the 15th day of January of the year following the particular calendar year.

• (1.2) For the purposes of this section, average monthly withholding amount, in respect of an employer for a particular calendar year, is the quotient obtained when

  • (a) the aggregate of all amounts each of which is an amount required to be remitted with respect to the particular year under

    • (i) subsection 153(1) of the Act and a similar provision of a law of a province which imposes a tax upon the income of individuals, where the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1),

    • (ii) subsection 21(1) of the Canada Pension Plan, or

    • (iii) subsection 82(1) of the Employment Insurance Act,

    by the employer or, where the employer is a corporation, by each corporation associated with the corporation in a taxation year of the employer ending in the second calendar year following the particular year

  is divided by

  • (b) the number of months in the particular year, not exceeding twelve, for which such amounts were required to be remitted by the employer and, where the employer is a corporation, by each corporation associated with it in a taxation year of the employer ending in the second calendar year following the particular year.

• (1.21) For the purposes of subsection (1.4), the monthly withholding amount, in respect of an employer for a month, is the total of all amounts each of which is an amount required to be remitted with respect to the month by the employer or, if the employer is a corporation, by each corporation associated with the corporation, under

  • (a) subsection 153(1) of the Act and a similar provision of a law of a province which imposes a tax upon the income of individuals, if the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1);

  • (b) subsection 21(1) of the Canada Pension Plan; or

  • (c) subsection 82(1) of the Employment Insurance Act.

• (1.3) For the purposes of subsection (1.2), where a particular employer that is a corporation has acquired in a taxation year of the corporation ending in a particular calendar year all or substantially all of the property of another employer used by the other employer in a business

  • (a) in a transaction in respect of which an election was made under subsection 85(1) or (2) of the Act,

  • (b) by virtue of an amalgamation within the meaning assigned to that term by section 87 of the Act, or

  • (c) as the result of a winding-up in respect of which subsection 88(1) of the Act is applicable,

  the other employer shall be deemed to be a corporation associated with the particular employer in the taxation year and each taxation year ending at any time in the next two following calendar years.

• (1.4) For the purposes of subsection (1.13) an employer

  • (a) becomes a new employer at the beginning of any month after 2015 in which the employer first becomes an employer; and

  • (b) ceases to be a new employer at a specified time in a particular year, if in a particular month the employer does not meet any of the following conditions:

    • (i) the monthly withholding amount in respect of the employer for the particular month is less than $1,000,

    • (ii) throughout the 12-month period before that time, the employer has remitted, on or before the day on or before which the amounts were required to be remitted, all amounts each of which was required to be remitted under subsection 153(1) of the Act, subsection 21(1) of the Canada Pension Plan, subsection 82(1) of the Employment Insurance Act or Part IX of the Excise Tax Act, and

    • (iii) throughout the 12-month period before that time, the employer has filed all returns each of which was required to be filed under the Act or Part IX of the Excise Tax Act on or before the day on or before which those returns were required to be filed under those Acts.

• (1.41) For the purposes of subsection (1.4), the specified time is the end of

  • (a) March of the particular year, if the particular month is January, February or March of that year;

  • (b) June of the particular year, if the particular month is April, May or June of that year;

  • (c) September of the particular year, if the particular month is July, August or September of that year; and

  • (d) December of the particular year, if the particular month is October, November or December of that year.

• (2) Where an employer has ceased to carry on business, any amount deducted or withheld under subsection 153(1) of the Act that has not been remitted to the Receiver General shall be paid within 7 days of the day when the employer ceased to carry on business.

• (3) Remittances made to the Receiver General under subsection 153(1) of the Act shall be accompanied by a return in prescribed form.

• (4) Amounts deducted or withheld under subsection 153(4) of the Act shall be remitted to the Receiver General within 60 days after the end of the taxation year subsequent to the 12-month period referred to in that subsection.