Principal Issues: 1. Whether the Minister may accept an amended partnership information return for a taxation year that is beyond the limitation period provided by subsection 152(1.4) of the Act, where no determination has been made prior to this period. 2. Whether the Minister may accept the request to amend a member of a partnership’s return of income, where no determination of the partnership information return for the particular year has be made and the partnership return is beyond the period provided by subsection 152(1.4) of the Act.
Position: 1. The Minister is not obligated to accept the amended partnership return. 2. Yes, in some circumstances.
Reasons: 1. In a situation where an amended partnership return has been filed beyond the three year period provided by subsection 152(1.4), the Minister is precluded from making a determination unless a waiver was filed, or one of the exceptions in 152(4) apply. Nevertheless, a partnership return is an information return only. Therefore, the Minister may accept the amended partnership return even though the Minister is precluded from making a partnership determination. 2. Subsection 152(4) provides that the Minister may reassess the return of income of a member of a partnership, without making a determination of the partnership under 152(1.4), provided the member’s return of income for the particular taxation year is not statute barred. An adjustment may also be accepted if it does not result in a change from a nil assessment to one with tax, interest or penalties payable.