Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
TEI Conference
December 4, 2001
Question 10 Reassessment Period
Paragraph 221(1)(d) of the Act empowers the Governor in Council to make regulations requiring any class of persons to file information returns. For partnerships, this requirement is described in subsection 229(1) of the Regulations.
Under subsection 220(2.1) of the Act, the Minister can waive the requirement for a person to file such information returns. Paragraph 11 of Information Circular 89-5R provides that the above requirement to file is waived where a partnership has 5 or fewer members.
However, in addition subsection 220(2.1) also provides that notwithstanding that the Minister may waive the requirement, the person who receives such a waiver must provide the information return if the Minister so requests.
In recent interpretations, the CCRA has stated that the partners of a partnership that have not filed a partnership return may be assessed at any time in accordance with subsection 152(1.4). How does the CCRA reconcile this position with the reassessment periods otherwise provided for the partners under subsection 152(4)?
If a corporate partner is requested to file the partnership information return after the corporation's taxation years are beyond the three-year limitation, how can CCRA effect changes to the partnership income or carry forward balances in the partners' corporate tax returns?
Response
Subsection 152(1.4) allows the Minister to determine, for example, any income or loss of the partnership for a particular fiscal period. This determination may be made within 3 years of the later of the following two dates:
(1) the day on or before which the information return, but for subsection 220(2.1), is required to be filed under Regulation 229, and
(2) the day on which the return is filed.
Under subsection 152(1.7), the Minister can establish a new assessment for each member of the partnership following a determination under 152(1.4). Subsection 152(1.7) can be made independent from 152(4) but only in respect of amounts determined under 152(1.4) at the partnership level.
With respect to the last question, the combined effect of subsections 152(1.4) and (1.7) will allow the Minister to effect changes to any carry forward balances or pools as a result of the determination.
Denise Dalphy
Partnership Section
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