The Canada Revenue Agency (CRA) has issued administrative relief specifically for non resident employees attending conferences in Canada. The relief, announced on December 21, 2012, recognizes the administrative burden on non-resident employers in meeting payroll reporting and withholding obligations for non-resident employees who provide services in Canada.
The general rule: When an employee attends a conference in Canada, either as an instructor or as an attendee, the employer is required to withhold and remit tax, unless the employee has applied for and received an approved waiver from withholdings from the CRA.
The CRA’s relief: Administrative relief is provided for an employee who:
This employee will not be required to obtain a waiver of withholding. The CRA will not assess the employer penalties and interest for the under withholding, nor will the employer be required to file a form T4 for the employment income associated with the employee’s attendance at the conference.