Declaration of Payments made to individuals without supporting documents
To be printed, filled and kept in the books of the local church as THE supporting document for the payment made to an individual, classified by order of cheque number with the other supporting documents. These payments could lead to the production of a T4A if the yearly total amount paid by all the churches of the Quebec Conference is greater than 500$CAN.
NOTE FOR NON-RESIDENT: The Canadian government requires a 15% tax retention, which means that the amount you are paying to the individual is the NET amount. The GROSS amount (which is the real expense for the church) is consequently 17.65% higher than the disbursement paid to the individual. That additional amount is billed to the local church and appears on the Quebec Conference yearly statement sent each year to local churches with other items like building insurance, etc.
Example: A local church agrees to pay 600$US to an evangelist coming from the US. If the conversion rate is 1.35, the local church will then need to disburs 600$US x 1.35 = 810$CAN, and will also need to pay the Quebec Conference an additional 142.94$CAN ((810$ / 0.85) - 810$) that will appear on its next yearly statement sent to the local church.
CONCLUSION: The total expense for the local church is 952.94$CAN, which is 810$CAN (that corresponds to 85% of 952.94$CAN, and is equivalent to the 600$US paid to the individual), plus 142.94$ of Canadian income taxes paid by the Quebec Conference to the Canadian government and that also needs to be paid (reimbursed) by the local church.