Subsection 216(1) - Alternatives re rents and timber royalties
Cases
Pechet v. Canada, 2009 DTC 5189, 2009 FCA 341
The non-resident taxpayer received rents from Canada in 1997 to 2001 without withholding of Part XIII tax, and in 2002 filed returns under s....
The Queen v. Merali, 88 DTC 6173, [1988] 1 CTC 320 (FCA)
The taxpayer computed his income from a rental property during the 1978-1980 taxation years, while he was a non-resident of Canada, in accordance...
Arnos v. The Queen, 81 DTC 5126 (FCTD)
Before going on to find that a non-resident trust (established by a U.S. REIT) was subject to tax with respect to recapture of depreciation...
MNR v. Bessemer Trust Co., 73 DTC 5045, [1973] CTC 12 (FCA)
Income of a non-resident trust from its interest in real property in Canada, in respect of which it previously had made a s. 216 election,...
See Also
Pechet v. The Queen, 2008 DTC 3381, 2008 TCC 208, aff'd 2009 FCA 341
The taxpayer was assessed for interest on withholding tax that a tenant of a rental property in Edmonton, Alberta owned by a partnership of which...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 227 - Subsection 227(8.1) | interest accrued on retroactively eliminated s. 215 remittance amounts | 148 |
Administrative Policy
20 June 2005 External T.I. 2004-0095441E5 - subsection 216(1) election on rent receivable
Is a non-resident person that has accrued rental income at the end of a taxation year able to file an s. 216(1) election in that year for that...
20 September 2002 Internal T.I. 2002-0146627 - Statute Barred Limits, Section 216 and 152(8)
After leaving Canada, an individual filed a Part I return under s. 216(1) reporting only rental income. Assessment of that s. 216 return is now...
23 July 1997 T.I. 963894
Where a non-resident corporation has elected under s. 216(1), the calculation of its "outstanding debts to specified non-residents" and of its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(4) | 60 |
8 November 1996 Memorandum 963552
"The filing of a return of income pursuant to section 216 cannot have any impact on whether or not an individual meets the 'all or substantially...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 118.94 | 61 |
14 July 1994 Memorandum 940737 (C.T.O. "Non-Resident Partner & 216 Election (7558-3)")
Brief discussion of application of s. 216 election where there is a non-resident partner in a partnership receiving rents from a MURB property.
5 January 1993 T.I. 9225705
Two non-resident individuals (A and B) are each a 50% partner of a non-resident general partnership (AB) which, in turn is a 50% partner in a...
16 July 1991 T.I. (Tax Window, No. 6, p. 14, ¶1350)
Where a non-resident trust which has made the s. 216(1) election receives a lump sum as payment of the entire three-year rent for Canadian...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Timing | 53 |
9 February 1990 T.I. (July 1990 Access Letter, ¶1341)
The thin capitalization rule in s. 18(4) will have application to a non-resident corporation which makes a s. 216(1) election.
IT-393R "Election re Tax on Rents and Timber Royalties - Non-Residents"
Subsection 216(4) - Optional method of payment
See Also
Stellwaag v. The Queen, 2013 DTC 1106 [at 573], 2013 TCC 111
The taxpayers filed s. 216(4) undertakings in respect of their 2007 taxation year, but did not file returns until 21 July 2013. D'Auray J found...
Curragh Inc. v. The Queen, 94 DTC 1894 (TCC)
In response to a submission that s. 216(4) seems to assume that a Canadian agent of a non-resident will receive rents or royalties on behalf of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 215 - Subsection 215(1) | agent's s. 215(3) liability does not relieve taxpayer's s. 215(1) liability | 139 |
| Tax Topics - Income Tax Act - Section 215 - Subsection 215(3) | 139 |
Administrative Policy
22 July 2014 External T.I. 2014-0520701E5 - Meaning of "any amount" in subsection 216(4)
A Canadian agent remits rent to a non-resident who owns rental property in Canada. They have filed an NR6. Rental property expenses are paid both...
7 February 2014 Internal T.I. 2013-0506151I7 - Section 216 returns and interest
After an agent of a non-resident was assessed for failing to withhold and remit Part XIII tax on rental collections paid to the non-resident as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 227 - Subsection 227(8.3) | accrual of interest until filing of s. 216(4) return | 189 |
T4061 NR4 - Non-Resident Tax Withholding, Remitting, and Reporting - 2015
Although we accept Form NR6 throughout the year, the effective date for withholding on the net amount will be the first day of the month in which...
T4144 "Income Tax Guide for Electing Under Section 216 - 2015"
You should send us Form NR6 on or before January 1, of each year, or before the first rental payment is due. Your agent must continue to withhold...
27 March 2013 External T.I. 2012-0450491E5 - Election under s. 216
Where a Canadian-resident tenant pays rent to a partnership having one or more non-resident partners, those non-residents may elect under s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 212 - Subsection 212(13.1) - Paragraph 212(13.1)(b) | full withholding on rents paid to non-Canadian partnership with some resident partners | 50 |
90 C.R. - Q60
The Canadian agent must undertake to file a return and pay the balance of tax should the non-resident fail to do so, but there is no requirement...
89 C.M.TC - Q.18
Non-cash items such as CCA are not eligible deductions. The reduction in withholding will only take effect from the date the NR6 is received.
87 C.R. - Q.89
Non-cash expenses, such as CCA, are not eligible deductions, whereas normal non-capitalized expenses relating to repairs, property taxes,...
86 C.R. - Q.83
The required deductions and remittances may not necessarily be based on 1/12 of the net rental, but may depend on the amount available to the...
81 C.R. - Q.48
Where the Canadian lessee signs the form NR6 as agent of the non-resident, thereby agreeing to pay any tax liability should the non-resident not...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 105 - Subsection 105(1) | 21 |
Articles
Jack Bernstein, "Nonresident Investment in Canadian Real Estate", Tax Notes International, Vol. 31, No. 3, 21 July 2003, p. 249.
Forms
NR6 - Undertaking to File and Income Tax Return by a Non-Resident Receiving Rent from Real or Immovable Property or Receiving a Timber Royalty for...
Subsection 216(5) - Disposition by non-resident
Cases
Deitcher v. The Queen, 79 DTC 5415, [1979] CTC 500 (FCTD)
The recapture of depreciation that is included in income under what is now s. 216(5) includes depreciation that was claimed by the non-resident...