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Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Full Document:  

Act current to 2024-05-01 and last amended on 2024-01-22. Previous Versions

PART XXReporting Rules for Digital Platform Operators (continued)

Marginal note:Residence

  •  (1) A reporting platform operator must consider a seller resident in the jurisdiction of the seller’s primary address.

  • Marginal note:Government verification service

    (2) Notwithstanding subsection (1), a reporting platform operator must consider a seller resident in each jurisdiction confirmed by a government verification service pursuant to subsection 284(3).

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 78

Marginal note:Rented immovable property

 Where a seller provides relevant services for the rental of immovable property, the reporting platform operator must collect the address of each property listing.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 78

Marginal note:Due diligence

  •  (1) A reporting platform operator must complete the due diligence procedures set out in sections 283 to 287 by December 31 of the reportable period.

  • Marginal note:Previously registered accounts

    (2) Despite subsection (1), the due diligence procedures set out in sections 283 to 287 are required to be completed by December 31 of the second reportable period of the reporting platform operator, for sellers that are already registered on the platform

    • (a) as of January 1, 2024; or

    • (b) as of the date on which an entity becomes a reporting platform operator.

  • Marginal note:Previous due diligence

    (3) Notwithstanding subsection (1), a reporting platform operator may rely on the due diligence procedures conducted in respect of previous reportable periods, provided

    • (a) the primary address of the seller has been either collected and verified or confirmed within the last 36 months; and

    • (b) the reporting platform operator does not have reason to know that the information collected pursuant to sections 283, 284 and 287 is or has become unreliable or incorrect.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 78

Marginal note:Active sellers

 A reporting platform operator may elect to complete the due diligence procedures under sections 283 to 288 in respect of active sellers only.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 78

Marginal note:Due diligence by third parties

  •  (1) A reporting platform operator may rely on a third-party service provider to fulfil the due diligence obligations under sections 291 and 292, but such obligations remain the responsibility of the reporting platform operator.

  • Marginal note:Partner jurisdiction

    (2) When a platform operator fulfils the due diligence obligations for a reporting platform operator with respect to the same platform under subsection (1), such platform operator may carry out the due diligence procedures pursuant to substantially similar rules in its partner jurisdiction.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 78

Marginal note:Reporting to Minister

  •  (1) A reporting platform operator must report to the Minister the information set out in section 292 with respect to the reportable period no later than January 31 of the year following the calendar year in which the seller is identified as a reportable seller.

  • Marginal note:Reporting to seller

    (2) A reporting platform operator must provide the information set out under section 292 to the reportable seller to which it relates no later than January 31 of the year following the calendar year in which the seller is identified as a reportable seller.

  • Marginal note:Reporting not required

    (3) Notwithstanding subsections (1) and (2), the information in relation to a reportable seller is neither required to be reported to the Minister nor to be made available to the reportable seller in circumstances where the reporting platform operator has obtained adequate assurances that another platform operator has or will fulfil the reporting obligations under this section and section 292

    • (a) with respect to the reportable seller pursuant to the rules in Canada; or

    • (b) with respect to the reportable seller, other than a reportable seller resident in Canada, under substantially similar rules in a partner jurisdiction.

  • Marginal note:Reporting

    (4) A reporting platform operator required to report information under this section shall report the information in prescribed form.

  • Marginal note:Electronic filing

    (5) Information required to be reported under this section shall be filed by way of electronic filing.

  • Marginal note:Currency

    (6) The information with respect to the consideration paid or credited in a fiat currency must be reported in the currency in which it was paid or credited. In case the consideration was paid or credited in a form other than fiat currency, it should be reported in the local currency of Canada, converted or valued in a manner that is determined consistently by the reporting platform operator.

  • Marginal note:Reporting in respect of quarter

    (7) The information with respect to the consideration and other amounts must be reported in respect of the quarter in which the consideration was paid or credited.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 78

Marginal note:Information reported

 Each reporting platform operator must report the following information:

  • (a) the name, registered office address and TIN of the reporting platform operator, as well as any business names of any platforms in respect of which the reporting platform operator is reporting;

  • (b) with respect to each reportable seller that provided relevant services (other than immovable property rental), rented out a means of transportation or sold goods,

    • (i) the items required to be collected pursuant to section 284,

    • (ii) any other TIN, including the jurisdiction of issuance, available to the reporting platform operator,

    • (iii) any financial account identifiers, insofar as they are available to the reporting platform operator and the jurisdiction of the reportable seller’s residence is specified by the Minister,

    • (iv) if different from the name of the reportable seller, the name of the holder of the financial account to which the consideration is paid or credited, to the extent available to the reporting platform operator, as well as any other identifying information available to the reporting platform operator with respect to that account holder,

    • (v) each jurisdiction in which the reportable seller is resident on the basis of the procedures set out in section 286,

    • (vi) the total consideration paid or credited during each quarter of the reportable period and the number of such relevant activities in respect of which it was paid or credited, and

    • (vii) any fees, commissions or taxes withheld or charged by the reporting platform operator during each quarter of the reportable period; and

  • (c) with respect to each reportable seller that provided relevant services for the rental of immovable property,

    • (i) the items required to be collected pursuant to section 284,

    • (ii) any other TIN, including the jurisdiction of issuance, available to the reporting platform operator,

    • (iii) any financial account identifiers, insofar as they are available to the reporting platform operator and either the jurisdiction of residence of the reportable seller or the jurisdiction in which the immovable property is located is specified by the Minister,

    • (iv) if different from the name of the reportable seller, the name of the holder of the financial account to which the consideration is paid or credited, to the extent available to the reporting platform operator, as well as any other identifying information available to the reporting platform operator with respect to the account holder,

    • (v) each jurisdiction in which the reportable seller is resident on the basis of the procedures set out in section 286,

    • (vi) the address of each property listing, determined on the basis of the procedures set out in section 287, and, if available, the land registration number,

    • (vii) the total consideration paid or credited during each quarter of the reportable period and the number of such relevant services provided with respect to each property listing in respect of which it was paid or credited,

    • (viii) any fees, commissions or taxes withheld or charged by the reporting platform operator during each quarter of the reportable period, and

    • (ix) if available, the number of days each property listing was rented during the reportable period and the type of each property listing.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 78

Marginal note:Production of TIN

  •  (1) Every reportable seller shall provide their TIN at the request of a reporting platform operator that is required under this Part to make an information return requiring the TIN.

  • Marginal note:Confidentiality of TIN

    (2) A reporting platform operator required to make an information return referred to in subsection (1) shall not knowingly use, communicate or allow to be communicated, otherwise than as required or authorized under this Act or a regulation, the TIN without the written consent of the reportable seller.

  • Marginal note:Penalty for failure to provide TIN

    (3) Every reportable seller who fails to provide on request their TIN to a reporting platform operator that is required under this Part to make an information return requiring the TIN is liable to a penalty of $500 for each such failure, unless

    • (a) an application for the assignment of the TIN is made to the relevant reportable jurisdiction not later than 90 days after the request was made and the TIN is provided to the reporting platform operator that requested it within 15 days after the reportable seller received it; or

    • (b) the reportable seller is not eligible to obtain a TIN from the relevant reportable jurisdiction (including because the relevant reportable jurisdiction does not issue TINs).

  • Marginal note:Assessment

    (4) The Minister may at any time assess any amount payable under subsection (3) by a reportable seller and, if the Minister sends a notice of assessment to the reportable seller, sections 150 to 163, subsections 164(1) and (1.4) to (7), sections 165 to 167 and Division J of Part I apply with such modifications as the circumstances require.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 78

Marginal note:Record keeping

  •  (1) Every reporting platform operator shall keep, at its place of business or at such other place as may be designated by the Minister, records that it obtains or creates for the purpose of complying with this Part, including records of documentary evidence.

  • Marginal note:Form of records

    (2) Every reporting platform operator required by this Part to keep records that does so electronically shall retain them in an electronically readable format for the retention period referred to in subsection (3).

  • Marginal note:Retention of records

    (3) Every reporting platform operator that is required to keep, obtain or create records under this Part shall retain those records for a period of at least six years following the end of the last calendar year in respect of which the record is relevant.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 78

Marginal note:Anti-avoidance

 If a person enters into an arrangement or engages in a practice, the primary purpose of which can reasonably be considered to be to avoid an obligation under this Part, the person is subject to the obligation as if the person had not entered into the arrangement or engaged in the practice.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 78
 

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