Hamilton v. The Queen, 2007 DTC 121, 2006 TCC 603 -- summary under Subsection 105(1)

By services, 28 November, 2015

In rejecting an argument of the taxpayer (who had been assessed vicariously under s. 227.1 in respect of the failure of a corporation of which he was a director to withhold on all amounts paid to non-residents of Canada performing work for it) that a number of the non-resident payees were not liable for income tax as a substantive matter, Bowie J. stated (at p. 123):

"In effect, I am asked to assess each of these 33 individuals and determine the refunds to which they would have been entitled had they filed returns in Canada. That would be impossible in the evidentiary vacuum that exists in this case. ... The words of section 153 of the Act and section 105 of the Income Tax Regulations required the company to withhold and to remit to the Receiver General 15% of the amounts paid, unless it could be shown that some or all of the payments were salary or wages, or otherwise fell within the definition of 'remuneration' ... ."

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withholding not reduced if no substantive liability
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