Principal Issues: [TaxInterpretations translation] Where a payer pays commissions to a self-employed person, is a T4A slip required to be filed? Is it the same when commissions are paid to a partnership or corporation?
Position: Yes.
Reasons: Income Tax Act.
XXXXXXXXXX 2009-032371
June 26, 2009
Dear Madam,
Subject: Filing T4A slips
This is further to your letter we received by fax on May 21, 2009, regarding the requirement to file T4A slips for commissions paid to self-employed individuals. Specifically, you wish to know whether the requirement to file T4A slips is the same whether the commission is paid to an individual (self-employed), a partnership or a corporation.
Unless otherwise indicated, all statutory references herein are to the provisions of the Income Tax Act (the "Act").
Our Comments
As stated in paragraph 22 of Information Circular 70-6R5 of May 17, 2002, it is the practice of the Canada Revenue Agency (CRA) not to issue written opinions regarding proposed transactions otherwise than by advance rulings. Furthermore, when it comes to determining whether a completed transaction has received appropriate tax treatment, that determination is made first by our Tax Services Offices as a result of their review of all facts and documents, which is usually performed as part of an audit engagement. However, we can offer the following general comments that we hope may be helpful to you. These comments may, however, under certain circumstances, not apply to your particular situation.
We confirm that the amount of commissions paid to self-employed individuals should be reported in Box 20 of the T4A slip. If the taxpayer is a corporation or a partnership - in fact, where the taxpayer has a business number - we request that the business number be entered in Box 13. The payer's business number should be entered in Box 61 of the slip.
For more information regarding the requirement to file a T4A for payments made to insurance brokers who are self-employed, we invite you to consult the Canada Revenue Agency website at the following address:
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/rtrns/t4a/slps/whn-eng.html
You can also refer to Guide RC4157 for general information on filing T4A slips. You can access the Guide through the following Internet link:
http://www.cra-arc.gc.ca/E/pub/tg/rc4157/READ-ME.html.
We hope that you find the above comments of assistance.
Best regards,
François Bordeleau, Advocate
Manager
Business and Partnerships Section
Income Tax Rulings Directorate.