Canadian Renters Now Required to Collect Foreign Landlord's Taxes, Withhold Rent

The renter in this case was responsible even though he claimed he did not know his landlord was a non-resident since she left Canada during the time that he rented. The Canada Revenue Agency disputed that claim since "[the landlord's] phone number on the lease was an Italian phone number; she had used an Italian e-mail address to correspond with [the renter]." The landlord had also asked the renter to start paying her sister who was still in Canada before she left for Italy.

I am curious about what would happen if the renter could genuinely establish that he did not know their landlord was a non-resident. Based on the defense lawyer's claim that "Whether the CRA could have collected the rent in some other way does not impact his liability under the law. The CRA and the Tax Court have to apply the law as it is written." [Note there is a mistake in this quote the CRA (Canada Revenue Agency) collects taxes not rent].

On the other page.. If foreign landlords are suspected of not paying their full taxes, this is one way to increase a guarantee that the taxes will be paid.