In response to a request for confirmation that taxpayers should not be subject to assessment for under-withholding if the applicable forms (NR301, 302 and 303) have been completed, CRA noted that it "recommends that payers or intermediaries collect the information requested on forms NR301, NR302, and NR303 since this information on beneficial ownership, residency, and eligibility for treaty benefits is generally the information the payer or intermediary will need to establish that a tax treaty rate applies." If CRA issues an assessment, the amount assessed is also subject to a penalty. Where the taxpayer requests a waiver for penalty and/or interest under s. 220(3.1), CRA:
will consider whether a taxpayer has exercised a reasonable amount of care when deciding if relief is warranted. The payerÂ’s level of effort to collect the forms or the information requested on them (a written declaration by the non-resident of beneficial ownership, residency, and eligibility for tax treaty benefits) in order to determine and apply the correct tax rate is important.