• T2062

INSTRUCTIONS

When and how to file the form

Use this form if you are a non-resident of Canada to give notice of the proposed disposition of, or the completed disposition of, certain taxable Canadian property. Taxable Canadian property is property described in subsection 248(1) of the Act. A disposition of taxable Canadian property includes any interest or option for such property, whether or not the property exists.

Use Form T2062A for proposed or completed dispositions of Canadian resource or timber resource property, Canadian real property (other than capital property), or depreciable taxable Canadian property. However, when disposing of depreciable taxable Canadian property, use this form to report the gain on the disposition and Form T2062A to report the recapture of capital cost allowance or terminal loss. If both forms T2062 and T2062A are required for a disposition, the forms must be filed together.

File a separate T2062 for each disposition or proposed disposition. However, if you are disposing of, or proposing to dispose of, several properties to the same purchaser at the same time, only one T2062 is required for all the properties. A separate T2062 must be filed by each person indicating an interest in a joint tenancy, tenancy in common, or co-ownership.

If you file a request for a proposed disposition under subsection 116(1) and the completed disposition complies with the requirements of subparagraphs 116(3)(d), (e), and (f), you do not have to file a separate request under subsection 116(3) for the completed disposition.

The CRA issues a certificate of compliance after tax is paid or security acceptable to the Minister is submitted in respect of the proposed or completed disposition. Final settlement of the tax liability is made when you file your Canadian income tax return. You have to file an income tax return to report the disposition of the property listed on this form. Failure to attach this certificate to your income tax return may result in a delay in processing.

Send this form along with all supporting documents (see attached list) to the tax services office for the area where the property is located. An incomplete notification will delay the issuance of a Certificate of Compliance.

Penalties for not filing
If you are giving notice of a completed disposition under subsection 116(3), you must send this form to CRA by registered mail not later than 10 days after the date of disposition. The penalty, under subsection 162(7), for failing to file or submit a notice on time is $25 a day. There is a minimum penalty of $100 and a maximum penalty of $2,500.

Userful links:
IT 171 - Non-Resident Individuals - Computation of Taxable Income Earned in Canada and Non-Refundable Tax Credits
IT 176 - Taxable Canadian Property - Interests in and Options on Real Property and Shares
IT 419 - Meaning of Arm's Length