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Partnerships for business. Lisa Patrick

On January 1, 2011, new filing criteria for the Partnership Information Return will come into effect. The new filing criteria will apply to partnerships with fiscal periods ending on or after January 1, 2011. For partnerships with fiscal periods ending on or before December 31, 2010, the current criteria still apply. See Partnerships and Information return filing requirements for more information.

Topics about Partnership

Reporting partnership income
Each partner files an income tax return to report his or her share of the partnership's net income or loss.
2010 and previous years filing requirements:
Partnerships that do not have to file a partnership information return (PIR) - T5013
Five partners or less throughout the whole fiscal period; and no partner who is another partnership.
Partnerships that have to file a partnership information return (PIR) - T5013
Six or more partners at any time in the fiscal period; or five partners or less throughout the whole fiscal period and one or more of its partners is another partnership.
The CRA is replacing the ABOVE requirement about the number of partners in a partnership with a requirement related to financial thresholds, and clarifying the requirements for the types of partners.

Effective January 1, 2011, a partnership that carries on a business in Canada, or a Canadian partnership with Canadian or foreign operations or investments, has to file a T5013 for each fiscal period of the partnership:

If, at the end of the fiscal period,
the partnership has an absolute value of revenues plus an absolute value of expenses of more than $2 million, or has more than $5 million in assets; or
If, at anytime during the fiscal period,
the partnership is a tiered partnership (has another partnership as a partner or is itself a partner in another partnership);
the partnership has a corporation or a trust as a partner; (common occurance!)
the partnership invested in flow-through shares of a principal-business corporation that incurred Canadian resource expenses and renounced those expenses to the partnership; or
the Minister of National Revenue requests one in writing.
Where can businesses get more information?

For more information, businesses can go to www.cra.gc.ca/partnership. More information will be added as it becomes available. Businesses can also contact the Business Enquiries line at 1-800-959-5525.

 


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