Summary Policy

Date
September 3, 2003 (Revised September 13, 2005)

Reference Number
CSP - T05

Key Words
Withholding tax

Policy Statement

The Income Tax Act requires tax to be withheld on certain payments (e.g., lump-sump payment from a registered pension plan). However, since a registered charity is exempt from Part I tax, the charity can apply to the Canada Customs and Revenue Agency for a waiver of the requirement to withhold tax.

References

• Direct Designation, CSP-D09.
• Tax, CSP - T01.
• Withholding Tax, CIL-2001-016.
• Income Tax Act, R.S.C. 1985 (5^th supp.) c. 1, ss. 153(1.1).