2013-0507171I7 F indicated that where a producer paid fees under a contract of service with the corporation of an incorporated performing artist and also was obligated to pay dues directly to the artists’ union (the UDA) in addition to some UDA dues that it was required to deduct from the fees paid to the artist’s corporation and remit, the producer was required to issue two T4As for the respective amounts to the artist’s corporation (so that the full fee amounts including dues deducted at source were included in its business income) and to the artist (so that the additional dues were included in his or her employment income from the corporation qua employer).
CRA now amended this Technical Interpretation to indicate that the second T4A (relating to the employee benefit arising out of the dues paid to the UDA) was required to be issued by the UDA rather than the producer. In this regard, CRA stated:
As for the amounts [the producer] contributes to the UDA on top of those fees… it should not issue a T4A slip to the artist for those amounts, as it is not the producer who provides benefits to the artist but, rather, the UDA. With respect to the contributions paid by the UDA for the benefit of the artist, subject to the exceptions in subparagraph 6(1)(a)(i) of the Income Tax Act, the artist must include in the employment income earned from the Corporation the value of the benefits accruing from such contributions. In addition, the UDA or the COPAR Fund, depending on the legal effect of the arrangements, must issue a T4A slip to the artist including the sums paid as vacation pay.