Income Tax Regulations — 201
201 (1) Every person who makes a payment to a resident of Canada as or on account of (a) a dividend or an amount deemed by the Act to be a dividend (other than a dividend deemed to have been paid to a person under any of subsections 84(1) to (4) of the Act where, pursuant to subsection 84(8) of the Act, those subsections do not apply to deem the dividend to have been received by the person), (b) interest (other than the portion of the interest to which any of subsections (4) to (4.2) applies) (i) on a fully registered bond or debenture, (ii) in respect of (A) money on loan to an association, corporation, institution, organization, partnership or trust, (B) money on deposit with an association, corporation, institution, organization, partnership or trust, or (C) property deposited or placed with an association, corporation, institution, organization, partnership or trust, (iii) in respect of an account with an investment dealer or broker, (iv) paid by an insurer in connection with an insurance policy or an annuity contract, or (v) on an amount owing in respect of compensation for property expropriated, (c) a royalty payment in respect of the use of a work or invention or a right to take natural resources, (d) a payment referred to in subsection 16(1) of the Act that can reasonably be regarded as being in part a payment of interest or other payment of an income nature and in part a payment of a capital nature, where the payment is made by a corporation, association, organization or institution, (e) an amount paid from a person’s NISA Fund No. 2, (f) an amount that is required by subsection 148.1(3) of the Act to be added in computing a person’s income for a taxation year, or (g) the portion of the price for which a debt obligation was assigned or otherwise transferred that is deemed by subsection 20(14.2) of the Act to be interest that accrued on the debt obligation to which the transferee has become entitled to for a period commencing before the time of the transfer and ending at that particular time that is not payable until after that particular time if the payment is made by a person that is a financial company (whether acting as principal or as agent for the transferee) for the purposes of section 211 shall make an information return in prescribed form in respect of the portion of such payment for which an information return has not previously been made under this section. (2) Every person who receives as nominee or agent for a person resident in Canada a payment to which subsection (1) applies shall make an information return in prescribed form in respect of such payment. (3) Where a person negotiates a bearer coupon, warrant or cheque representing interest or dividends referred to in subsection 234(1) of the Act for another person resident in Canada and the name of the beneficial owner of the interest or dividends is not disclosed on an ownership certificate completed pursuant to that subsection, the person negotiating the coupon, warrant or cheque, as the case may be, shall make an information return in prescribed form in respect of the payment received. (4) A person or partnership that is indebted in a calendar year under a debt obligation in respect of which subsection 12(4) of the Act and paragraph (1)(b) apply with respect to a taxpayer shall make an information return in prescribed form in respect of the amount (other than an amount to which paragraph (1)(g) applies) that would, if the year were a taxation year of the taxpayer, be included as interest in respect of the debt obligation in computing the taxpayer’s income for the year. (4.1) A person or partnership that is indebted in a calendar year under an indexed debt obligation in respect of which paragraph (1)(b) applies shall, for each taxpayer who holds an interest in the debt obligation at any time in the year, make an information return in prescribed form in respect of the amount that would, if the year were a taxation year of the taxpayer, be included as int