In other words, it will be business as usual for US investors receiving Canadian dividends in 2012.

According to a spokesman for the CRA, discussions occurred with a number of associations in the financial services industry and others who had contacted the CRA directly. The CRA also received written submissions. The discussions that took place were with interested parties from both sides of the border, in Canada and the US.

As we first reported Dec. 6, the CRA is seeking formal validation of tax-treaty rate eligibility, a change from the previous view that merely residing in such a country was sufficient to qualify. If the CRA is not provided the verification it seeks by Jan. 1, 2013, it will withhold from dividends paid to US owners of shares in Canada-based companies at a rate of 25 percent rather than 15 percent, as is contemplated by the Convention Between the United States of America and Canada with Respect to Taxes on Income and Capital, or the US-Canada tax treaty, and accompanying conventions and explanatory notes.

If you’re an investor who holds Canada-based dividend-paying corporations in accounts with major brokerages such as Charles Schwab, Fidelity and including niche brokerages such as Pennaluna & Company, it’s still unlikely you’ll be affected by this new rule. According to at least one major, Charles Schwab, US investors who hold account with brokerages won’t have to take any action yet.

On Apr. 19, 2011, the CRA introduced new verification forms to be completed by non-Canadian resident shareholders in Canada-based companies who live in countries with whom Canada has negotiated a tax treaty. As it now stands these forms–for individuals it’s Form NR301, Declaration of Eligibility for Benefits under a Tax Treaty for a Non-Resident Taxpayer–are to be completed before Jan. 1, 2013. But the new rule does not specifically require use or submission of the form.

US firms would prefer to maintain current procedures for verification through US-based Depositary Trust Corporation (DTC), for example, that utilizes their own account opening and certification procedures and the documentation resulting therefrom.

“Registered shareholders”–the stock you own is registered in your name on the underlying company’s books, which is kept by the company’s transfer agent, and you’re in physical possession of a certificate that represents your ownership interest–will likely have to complete forms for submission to your respective underlying companies’ transfer agent.

You’re going to receive forms directly from transfer agents for all the underlying companies you own requesting information to confirm your tax treaty eligibility. Registered shareholders should complete and remit these forms as soon as possible. If you’re a registered shareholder of any Canada-based dividend-paying corporation, whether it was ever a trust or not, complete any such forms if they’ve already been forwarded to you.

If you are a registered shareholder of a dividend-paying Canadian corporation and haven’t received notification from it, it might be a good idea to send an e-mail or phone an investor relations representative at the relevant company.