Weekly Tax Tips
Ensure that the new filing requirements for Partnership Information Returns are met
Date: 11 Nov 2011
If you’re a member of a partnership that was previously exempted from having to file a Partnership Information Return (Form T5013 including schedules and slips) because there were less than six partners, you may find that the partnership needs to file a return this year. Previously, the CRA’s administrative policy generally exempted partnerships with fewer than six partners from filing a return. However, the CRA has changed their filing requirements for partnerships with fiscal periods ending on or after January 1, 2011.
Partnerships will now be required to file a Partnership Information Return for each fiscal period that they meet certain criteria. These criteria are based on size of the partnership, except that tiered partnerships, partnerships with a trust or corporation as a partner and certain resource partnerships will not be exempt based on size. As the filing criteria are based on current year results and not the prior year, you may find that at the end of the year, you have a filing requirement that you weren’t expecting.
For further information, read our Tax Factor 2011-01 article “New Filing Requirements for Partnership Returns” and speak with your BDO advisor for assistance in complying with this new filing requirement.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 11 Nov 2011.
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