CRA discusses filing relief re FAs in a war-torn country

Will CRA grant any administrative relief in relation to the reporting requirements of Canadian multinationals for their subsidiaries in the Ukraine or Russia, such as country-by-country reporting, and forms T1134, given that financial reporting from these subsidiaries may not be available for 2022? CRA indicated:

• For forms T1134 and T1141, the due diligence exception in s. 233.5 would be available if the taxpayer provides: the available information; the circumstances making the other information unavailable; and an explanation of the steps taken to obtain the information.
• Relief may also be granted under s. 220(2.1), which could include the unconsolidated financial statements of the foreign affiliate that otherwise would have to be filed along with the T1134.
• A Canadian multinational should present its request for relief under s. 220(2.1) to its Tax Services Office in advance of the filing due-date for the subject form.
• CRA can also exercise discretion in cancelling penalties and interest under s. 220(3.1). The request should be submitted after the information return has been filed and processed.

Neal Armstrong. Summaries of 17 May 2023 IFA Roundtable, Q.2 under s. 233.5 and s. 220(2.1).