Form descriptions - Standard refund - Canadian trust instruments

08.02.2013

For a standard refund of withholding tax on income from Canadian trust instruments, the documentation requirements for residents of a DTT country who qualify as non-resident according to Form NR301 (General), NR302 (Partnerships) or NR303 (Hybrid entities) and Tax-exempt entities are as follows:

  • Letter of Request to Clearstream Banking for Reclaim of Canadian Withholding Tax;
  • Request for Refund from the Canada Revenue Agency;
  • NR7-R Application for Refund of Non-resident Tax Withheld;
  • Breakdown of Trust Instrument Components;
  • Beneficial Ownership Affidavit with Registered Ownership (notarised);
  • Credit Advice.

N.B.: In order to obtain the refund, beneficial owners may be required, upon request, to provide other supporting documention, such as CRA Form NR301, NR302 or NR303.

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from Canadian trust instruments.

Letter of Request to Clearstream Banking for Reclaim of Canadian Withholding Tax

This authorises Clearstream Banking to reclaim withholding tax from the Canadian Tax Authorities on the customer's behalf.

How many are provided?One per reclaim application.
Who completes it?Customer.
How often is it provided?Per reclaim application.
When is it provided?At the latest, three months before the statutory deadline.
Copy or original?Original required.

Request for Refund from the Canada Revenue Agency

This authorises the CRA to make the refund on Clearstream Banking’s account with its depository and it indicate the relationship between the beneficial owner, Cleartream Banking and its depository.

How many are provided?One per reclaim application.
Who completes it?Beneficial owner.
How often is it provided?Per reclaim application.
When is it provided?At the latest, three months before the statutory deadline.
Copy or original?Original required.

NR7-R Application for Refund of Non-Resident Tax Withheld

The Canadian Tax Authorities withholding tax refund form NR7-R is to be used for all beneficial owners eligible for a tax reclaim.

N.B.: The "Mailing address (authorised) C/O" part must be left blank for completion by Clearstream Banking.

How many are provided?One per reclaim application.
Who completes it?Beneficial owner or customer under Power of Attorney.
How often is it provided?Per reclaim application.
When is it provided?At the latest, three months before the statutory deadline.
Copy or original?Original required.

Breakdown of Trust Instrument Components

In order to obtain a standard refund, customers must attach, in addition to the normal required documentation, a breakdown of the components distributed.

There is no specific format requirement but the details need to be clear to the CRA in order for them to reconcile with the amounts stated in the NR7-R Application for Refund of Non-Resident Tax Withheld.

How many are provided?One per reclaim application.
Who completes it?The beneficial owner.
How often is it provided?Per reclaim application.
When is it provided?At the latest, three months before the statutory deadline.
Copy or original?Original required.

Beneficial Ownership Affidavit with Registered Ownership (notarised)

The affidavit is required to confirm and connect all those involved in the payment chain of the income. The document must be notarised.

How many are provided?One per reclaim application.
Who completes it?The financial institution with whom the beneficial owner holds the securities.
How often is it provided?Per reclaim application.
When is it provided?At the latest, three months before the statutory deadline.
Copy or original?Original required.

Credit Advice

Identifies income payment details including the security type, gross amount of payment, date of payment and amount of tax withheld. The credit advice must reconcile with the information in the refund form. If the beneficial owner is the customer's client, the credit advice from the customer to the beneficial owner must be provided.

How many are provided?One per beneficial owner.
Who completes it?The financial institution paying the beneficial owner.
How often is it provided?Per reclaim application.
When is it provided?At the latest, three months before the statutory deadline.
Copy or original?Original required.