Canada’s Minister of Justice Arif Virani, published an updated version of Canada’s Income Tax Act.  (Revised Canadian Statutes (R.S.C.), 1985, c. 2 (5th Supp.).

Under this Act, residents in Canada should pay income tax on the taxable income for each taxation year at any time in the year. The taxable income of a taxpayer for a taxation year is the taxpayer’s income for the year plus the additions and minus the deductions permitted by Division C.

Where a person who is not taxable under subsection 2(1) for a taxation year was employed in Canada, carried on a business in Canada, or disposed of a taxable Canadian property at any time in the year or a previous year, an income tax shall be paid, as required by this Act, on the person’s taxable income earned in Canada for the year determined in accordance with Division D.

Application of Part XIII of Amended Act

When an amount is paid or credited by a person resident in Canada to a non-resident person, in respect of interest payable on any bond, debenture, mortgage, note, or similar obligation issued before 1976 by the Canadian resident to the non-resident, for the purposes of computing the tax under Part XIII of the amended Act payable by the non-resident on the amount, the reference in subsection 212(1) of that Act to “25%” shall be read as “15%”.

This applies to non-residents who are (a) residents in a prescribed country and (b) with whom the Canadian resident was dealing at arm’s length.

The Income Tax Act is up-to-date as of 11 June, 2024, and the most recent amendment was made on 22 January, 2024.