The Appellant corporation paid rent on behalf of its shareholder for a residential condo in Montreal.
The Minister assessed the Appellant for failure to withhold and remit Part XIII tax on the rental payments, on the basis that the landlord was a non-resident living in Italy.
The Appellant argued it did not know the landlord was a non-resident.
The Tax Court dismissed the appeal, finding that the landlord was a non-resident and that liability under subsection 215(6) of the Income Tax Act is absolute and does not require the payer to have knowledge of the payee's non-resident status.
