What is required from a non-resident selling property in Canada?

When a non-resident sells property in Canada, they are required to report the sale and pay a portion of estimated capital gains in advance. This requirement stems from Canadian tax laws designed to ensure that the government can collect taxes on any capital gains realized from the sale of property by non-residents. The advance payment acts as a safeguard for the Canada Revenue Agency (CRA) to avoid tax avoidance scenarios.

Non-residents must complete specific forms to report the sale and indicate their estimated capital gains. These forms help in determining the amount owed and ensure compliance with Canadian tax regulations. This process protects the interests of the Canadian tax system and ensures that non-residents adhere to their tax obligations in relation to property transactions in the country.

The other options do not accurately represent the legal requirements and implications for non-residents selling property in Canada, focusing instead on misconceptions about tax obligations and reporting liabilities.