Thank you for the question.
The distinction turns on whether the tenant is an individual renting their personal residence versus someone renting a property for business purposes. We are in the process of updating the website to clarify and be more in line with our internal processes, as communicated to our auditors.
While it is true that part XIII tax is jointly owed by the tenant and non-resident landlord, in the case of an individual renting their personal residence, the agency does not expect the tenant to withhold the 25% tax.
I cannot speak specifically about the court case, although I am aware of it. I would simply point to the fact that the appellant in that case was a corporation.