Section 154 — Income Tax Act: Agreements providing for tax transfer payments

The Minister may, with the approval of the Governor in Council, enter into an agreement with the government of a province to provide for tax transfer payments and the terms and conditions relating to such payments. Where, on account of the tax for a taxation year payable by an individual under this Part, an amount has been deducted or withheld under subsection 153(1) on the assumption that the individual was resident in a place other than the province in which the individual resided on the last day of the year, and the individual has filed a return of income for the year with the Minister, is liable to pay tax under this Part for the year, and is resident on the last day of the year in a province with which an agreement described in subsection 154(1) has been entered into, the Minister may make a tax transfer payment to the government of the province not exceeding an amount equal to the product obtained by multiplying the amount or the total of the amounts so deducted or withheld by a prescribed rate. Where, pursuant to an agreement entered into under subsection 154(1), an amount has been transferred by the Minister to the government of a province with respect to an individual, the amount shall, for all purposes of this Act, be deemed to have been received by the individual at the time the amount was transferred. Where, pursuant to an agreement entered into under subsection 154(1), an amount has been transferred by the government of a province to the Minister with respect to an individual, the amount shall, for all purposes of this Act, be deemed to have been received by the Receiver General on account of the individual’s tax under this Part for the year in respect of which the amount was transferred. In this section, an amount deducted or withheld does not include any refund made in respect of that amount.