Tax Doctors Canada Tax News And Information

When you file your income tax return, and it gets processed, does it end there? Is that tax year behind you for good? Unfortunately, it isn’t. The Canada Revenue Agency is allowed to go back and look at your previous tax returns and perform reassessments, if they so choose.

Regulation 105 puts the majority of the withholding and remitting obligations on the payor for the services rendered in Canada. The payor is required to withhold 15% of the payments made. If the required amount is not withheld, the company must pay (on behalf of the non-resident) the payment amount plus interest and applicable penalties.