Canadian trust instruments - Quick refund - eligibility, documentation, deadlines - Canada - CFCL

Beneficial owners are eligible for a quick refund of withholding tax on income from Canadian trust instruments as follows:

a. Tax exempt entities, Partnerships (NR302) and Hybrid Entities (NR303) are not considered eligible for a relief at source or quick refund, and any reclaim applications must be made via the standard refund procedure.

Important note:

Clients acting as Swiss intermediary for final beneficial owners of Canadian trust instruments can also apply for a quick refund via Clearstream Fund Centre.

Documentation requirements

For a quick refund of withholding tax on income from Canadian trust instruments, the documentation requirements are as follows:

Residents of a DTT country (non-resident according to Form NR301)

• One-Time Certificate – Canadian Trust Instruments;
• Per-Payment Instruction;
• CRA Form NR301, as follows:
  - For clients holding proprietary assets: An original Form NR301, signed by the client as final beneficial owner qualifying for DTT relief according to Form NR301, must be submitted to Clearstream Fund Centre directly.
  - For clients acting as intermediary: An original Form NR301, signed by the final beneficial owner qualifying for DTT relief according to Form NR301, must be submitted to and retained by the client, who must provide it promptly to Clearstream Fund Centre upon request at any time.
  The client must exercise due diligence with respect to the information provided on this form and must verify whether the information is sufficient to claim DTT relief on behalf of the final beneficial owner.

And, upon request:

• List of Beneficial Owners – Canadian Trust Instruments;
• CRA Form NR301 (from clients acting as intermediary);
• Certificate of Residence;
• Any other tax documentation as required from time to time.

Swiss intermediary banks

• One-Time Certificate – Canadian Trust Instruments - Swiss Intermediary; 
• Per-Payment Instruction.

Deadline for receipt of documents

The deadline for reclaiming withholding tax on Canadian Trust Instruments using the quick refund procedure through Clearstream Fund Centre will be communicated to clients via announcements, on an annual basis, at the year end. Clients must therefore refer to the annual announcement in order to have the applicable deadlines.

The usual deadlines are however as defined below:

Positions for which clients have not submitted the requested documentation before the prescribed deadline will be taxed, through Clearstream Fund Centre, at the maximum applicable rate.