23 June 1989 Income Tax Severed Letter AC7859 - Withholding of Tax

By services, 22 July, 2022
Official title
Withholding of Tax
Language
English
Document number
Citation name
AC7859
Severed letter type
Miscellaneous
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
656686
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1989-06-23 08:00:00",
"field_tags": []
}
Main text
TO: Tax Reform and T1 Processing     FROM: Specialty Rulings
       Division                              Directorate
                                           K.B. Harding
                                           957-2129

Mr. K. Hillier

As a result of a conversation with G. McIntyre concerning the withholding of tax by non-resident with respect to salaries, wages, commissions etc. paid to residents of Canada, he suggested I forward a copy of our letter to your Division since we disagree with the attached May 11, 1978 letter signed by Mr. Howard Fisher.

While it is agreed that it may be impossible to force non-resident employers to comply with our law when they do not have a permanent establishment in Canada, we do not suggest that we should advise them to ignore the law since most non-residents will comply with our laws in order to carry on business in Canada.

We trust you will review this matter and, if necessary, advise the relevant law firm of our policy in this matter.

for Director Reorganizations and Non-Resident Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch