9 July 2021 Internal T.I. 2021-0893981I7 - CERB received by non-residents -- summary under Subsection 120(1)

Regarding the treatment of payments (“CERB Payments”) made pursuant to the Canada Emergency Response Benefit Act (the “CERB Act”) to an individual (a “Non-Resident”) who was a non-resident of Canada for purposes of the Act and Art. IV of Canada’s Income Tax Conventions, the Directorate noted that CERB Payments are required to by ss. 56(1)(r)(iv.1) and 115(1)(a)(iii.22) to be included in computing the taxable income earned in Canada of a Non-Resident recipient, and then indicated that since Reg. 2602 does not refer to amounts included in income pursuant to s. 115(1)(a)(iii.22), CERB Payments are subject to the federal surtax pursuant to s. 120(1) rather than being income earned in a province.