Canada: New documentation requirements for relief at source - update

Further to our Announcement A11123, dated 8 September 2011, concerning the new tax certification requirements of the Canada Revenue Agency (CRA), we hereby provide this latest information.

The CRA has announced that they have extended the time to obtain additional information from non-resident beneficial owners such that the transition period for payments subject to Part XIII tax is to be extended from 31 December 2011 to 31 December 2012.

References to this extension for obtaining information have been posted on the CRA website at the following locations¹.

• http://www.cra-arc.gc.ca/formspubs/frms/ic76-12r6-eng.html
  
• http://www.cra-arc.gc.ca/tx/nnrsdnts/pyr/prtxiii/wthhldng/bnfclwnrshp-eng.html
  
• http://www.cra-arc.gc.ca/tx/nnrsdnts/pyr/prtxiii/wthhldng/prcdrtrstnl-eng.html

In view of this extension, the implementation of the change of documentation requirements for non-resident beneficial owners has been postponed until 1 January 2013.

We continue to monitor the situation and will provide further information as it becomes available.

Holding restriction for Canadian residents

We take this opportunity to inform you that, as of 1 January 2012, customers must refrain from holding, on their Clearstream Banking² account, securities on behalf of beneficial owners (including themselves, if applicable) who are resident for tax purposes in Canada as defined by relevant Canadian laws and regulations.

N.B.: It is the customer’s responsibility to put in place all necessary arrangements with respect to holding restrictions. The customer shall indemnify and hold harmless Clearstream Banking, its directors, officers, agents, employees or affiliates (the “Indemnified Persons”) for any loss, expense, liability, damage or claims incurred by any of the Indemnified Persons as a result of the non-compliance with such holding restrictions.³

Further information

For further information, please contact the Clearstream Banking Tax Help Desk on:

or Clearstream Banking Customer Service or your Relationship Officer.

1. The accuracy of these locations (and therefore the validity of the links here provided) is beyond our control and they may be subject to change.
2. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).
3. The details of these holding restrictions in Canada have been updated in our ICSD (Canada) and CSD (U.S.A.) Market Reference information accordingly.