Apr 19, 2021
As you may know, we have supported a request to the CRA to extend the April 30 deadline to June 15. But if the deadline is NOT extended, here are some practical tips to reduce the burden of a COVID tax season.
“There are two changes in this revised version of T5013 that are worth noting..”
New Disclosure Requirements
In February 2012, the Canada Revenue Agency (“CRA”) issued a revised version of its Partnership Information Return (Form T5013) to reflect new information that the CRA requires. There are two changes in this revised version of T5013 that are worth noting:
Effective Date and Transitional Relief
These new requirements apply to filings beginning February 2012. However, the CRA, recognizing that these new requirements significantly increase the compliance burden for many partnerships, has provided transitional administrative relief. On February 29, 2012, the CRA announced that it will accept returns containing either the 2010 or 2011 version of Form T5013 Schedule 50 if the return meets the following conditions:
The CRA recognizes the increased demands imposed by new Schedule 9, and recommends that this schedule be prepared based on the best knowledge and ability of the partnership and preparer. The CRA has announced that it will not impose penalties for incomplete Form T5013 returns, filed for 2011 fiscal periods, that have been prepared, to the best knowledge and ability of the partnership and preparers, and submitted by the filing deadline.
What Should You Do?
While transitional relief is available, preparers and their clients should start early to gather the information needed to support the new requirements. This may be an onerous task for partners who have not maintained the required ACB and at-risk amounts calculations historically, especially for partnerships that have not been preparing and filing T5013 returns previously because of the exemption for partnerships with less than five partners (see Tax Tip 10-25). Additional information with respect to partnership and information return filing requirements can be found on the CRA website at www.cra.gc.ca/tx/bsnss/tpcs/slprtnr/prtnrshp.
The professionals in the TSG will be happy to assist you with questions regarding the preparation of Form T5013 returns and the revised disclosure requirements.
TAX TIP OF THE WEEK is provided as a free service to clients and friends of the Tax Specialist Group member firms. The Tax Specialist Group is a national affiliation of firms who specialize in providing tax consulting services to other professionals, businesses and high net worth individuals on Canadian and international tax matters and tax disputes.
The material provided in Tax Tip of the Week is believed to be accurate and reliable as of the date it is written. Tax laws are complex and are subject to frequent change. Professional advice should always be sought before implementing any tax planning arrangements. Neither the Tax Specialist Group nor any member firm can accept any liability for the tax consequences that may result from acting based on the contents hereof.
TAX TIP is provided as a free service to clients and friends of Cadesky Tax.
The material provided in Tax Tip is believed to be accurate and reliable as of the date of posting. Tax laws are complex and are subject to frequent change. Professional advice should always be sought before implementing any tax planning arrangements. Cadesky Tax cannot accept any liability for the tax consequences that may result from acting based on the contents hereof.