Tenants Beware: The Risks of Landlord Tax Liabilities
A recent ruling from the Tax Court of Canada underscores the significance of tenants verifying their landlords' residency status in adhering to any obligations to withhold taxes in accordance with Part XIII of the Income Tax Act Canada the Tax Act. In 3792391 Canada Inc. v The King, 2023 TCC 37, the Court held the tenant taxpayer liable for failing to withhold and remit Part XIII tax on rental payments made to a non-resident landlord, despite the tenant being unaware the landlord was a non-resident of Canada for tax purposes.
Source: bennettjones.com
