ARTICLE · 09 SEPTEMBER 2024

T4As: When Are They Required? When Is Tax Withholding Also Required?

Millar Kreklewetz

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A T4A slip is an essential Canadian tax form that businesses must issue to contractors and other self-employed individuals when payments are made for services rendered within Canada.

CanadaTax

Robert Kreklewetz

John Bassindale

A T4A slip is an essential Canadian tax form that businesses must issue to contractors and other self-employed individuals when payments are made for services rendered within Canada.

For Direct Selling businesses, properly issuing T4A slips and understanding withholding requirements are crucial for ensuring smooth, efficient operations and compliance with the Canada Revenue Agency (“CRA”).

When should a T4A be issued?

Subsection 200(1) of the Income Tax Regulations (“ITR”) mandates that any person making a payment described in subsection 153(1) of the Income Tax Act (“ITA”), including “fees, commissions or other amounts for services” (paragraph (g)), to a recipient—whether an individual, corporation or otherwise—must file an information return in the prescribed form (e.g., a T4A slip).

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