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.
Principal Issues: Due date for filing the partnership information return for a tiered partnership where the partnership has an established fiscal period ending December 31st and the members of the partnership (including end members) are a combination of corporations and a First Nation band.
Position: Paragraph 229(5)(c) of the Regulations applies and thus the filing due date would be on or before the earlier of (i) the day that is five months after the end of the fiscal period of the partnership, and (ii) the last day of March of the following calendar year. As the partnership has an established fiscal period ending December 31st, the filing due date would be on or before March 31st of the following calendar year.
Reasons: Wording of subsection 229(5) of the Regulations.
XXXXXXXXXX
2012-046695
Chrys Tzortzis, CA
January 11, 2013
Dear XXXXXXXXXX:
Re: Filing Due Date of the Partnership Information Return
We are writing in response to your letter dated October 22, 2012 wherein you inquire as to the filing due date of the T5013 partnership information return for a particular partnership (LP2) in a scenario involving a multi-tier limited partnership structure.
You state that LP2 is a limited partnership with an established fiscal period end of December 31st. The general partner of LP2 is a corporation (Corporation A) and the limited partner is another limited partnership (LP1). The general partner of LP1 is a corporation (Corporation B) and the limited partner is a First Nation band that is tax exempt under paragraph 149(1)(c) of the Income Tax Act. You also state that neither LP1 nor LP2 is a tax shelter.
Our Comments
Subsection 229(5) of the Income Tax Regulations (the "Regulations") sets out the date by which the information return (i.e. the T5013 partnership information return) referred to in subsection 229(1) of the Regulations must be filed. Subsection 229(5) states the following:
Subject to subsection (6), a return required by this section shall be filed with the Minister without notice or demand
(a) in the case of a fiscal period of a partnership all the members of which are corporations throughout the fiscal period, within five months after the end of the fiscal period;
(b) in the case of a fiscal period of a partnership all the members of which are individuals throughout the fiscal period, on or before the last day of March in the calendar year immediately following the calendar year in which the fiscal period ended or with which the fiscal period ended coincidentally; and
(c) in the case of any other fiscal period of a partnership, on or before the earlier of
(i) the day that is five months after the end of the fiscal period, and
(ii) the last day of March in the calendar year immediately following the calendar year in which the fiscal period ended or with which the fiscal period ended coincidentally.
As noted in your correspondence, Guide T4068 Rev. 11, Guide for the Partnership Information Return, provides that end members of a tiered partnership are to be considered in determining the filing due date of the T5013 partnership information return for the partnership. Therefore, in the case of LP2, its end members would be Corporation A, Corporation B and the First Nation band. Accordingly, in our view, paragraph 229(5)(c) of the Regulations would apply in the above scenario such that the filing due date of the T5013 partnership information return for LP2 would be on or before the earlier of (i) the day that is five months after the end of the fiscal period of the partnership, and (ii) the last day of March of the following calendar year. Thus, as LP2 has an established fiscal period ending December 31st, the filing due date of its T5013 partnership information return would be on or before March 31st of the following calendar year.
We trust the above comments will be of assistance.
Yours truly,
G. Moore
for Director
International Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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