ARCHIVED – Refunds for Non-residents - Regulation 105 and Section 116

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1. What was changed with respect to refunds of amounts withheld?
2. What currently happens when a refund is requested by a non-resident?
3. The income tax return for the non-resident was already assessed and a refund was not issued as the return was filed more than three years after the end of the taxation year. Can a refund application be submitted now?
4. What should be done if an income tax return has yet to be filed by the non-resident?
5. What supporting documentation should be submitted with the application for a refund included with the tax return?
6. Will I be paid interest on the refund?
7. Where can I get more information?

1. What was changed with respect to refunds of amounts withheld?

For an application for a refund in an income tax return filed after March 4, 2010, the budget proposes that a refund will be permitted if the return is filed by the non-resident no more than two years after the date of one of the following types of assessments:

• the assessment of a payer related to the withholding requirements under section 105 of the Income Tax Regulations for an amount paid to the non-resident (Regulation 105 assessment); or
• the assessment of a purchaser related to the withholding requirement under section 116 of the Income Tax Act for a property purchased from the non-resident (purchaser assessment).

The amount of the refund will be permitted to the extent that it relates to the tax paid by the payer or purchaser for these assessments on behalf of the non-resident.

2. What currently happens when a refund is requested by a non-resident?

Currently, a refund of an overpayment of tax cannot be issued when an income tax return is filed more than three years after the end of the taxation year.

3. The income tax return for the non-resident was already assessed and a refund was not issued as the return was filed more than three years after the end of the taxation year. Can a refund application be submitted now?

If the return was filed within two years of the Regulation 105 or purchaser assessment, you can submit a letter to the Canada Revenue Agency requesting the refund. The letter should be submitted to the following address:

International and Ottawa Tax Services Office
Post Office Box 9769, Station T
Ottawa ON K1G 3Y4
CANADA

The letter should include the non-resident's Canadian tax identifier (business number, social insurance number or individual tax number), the tax year and the amount of the refund.

4. What should be done if an income tax return has yet to be filed by the non-resident?

In these circumstances, the non-resident normally has a filing requirement and should file a return. However, if the return is filed more than three years after the taxation year, a refund will only be issued if the return is filed within the time limits described in Question 1.

The income tax return should be submitted to the following address:

International and Ottawa Tax Services Office
Post Office Box 9769, Station T
Ottawa ON K1G 3Y4
CANADA

5. What supporting documentation should be submitted with the application for a refund included with the tax return?

The Canada Revenue Agency will review each request on a case-by-case basis. Further documentation may be requested to validate the refund request. For example, information and documentation may be requested to determine the non-resident's eligibility for an exemption according to a particular income tax treaty provision.

6. Will I be paid interest on the refund?

For an application for a refund that is included with a tax return that is filed after the filing due date, the calculation of refund interest will start on the 31st day after the return is filed.

7. Where can I get more information?

The CRA is committed to providing taxpayers with up-to-date information. Taxpayers are encouraged to check our Web site often—all new forms, policies, and guidelines will be posted here as they become available.

Date modified:

2015-07-15