Author(s):
Dov Begun
Apr 30, 2016
The 2015 Federal Budget introduced changes that would exempt certain employers from payroll withholding obligations associated with their employees travelling back and forth to Canada to work on short-term projects. However, the obligation to withhold seems to still apply to employers that are supposed to be exempt from Canadian tax based on an income tax treaty between Canada and the employee’s country of origin.
In this article, Osler lawyer Dov Begun in the Taxation group examines section 102 of the Regulations to the Income Tax Act as well as key factors affecting exemptions, covered in the following main topic areas:
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The 2015 Budget
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Qualifying non-resident employer
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Qualifying non-resident employee
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The July 31 draft legislation – what changed?
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Certification by the minister
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General compliance issues
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Penalty relief
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Reporting requirements
DOWNLOAD PDF: Proposed payroll withholding obligation changes