19 November 1997 External T.I. 9728055 - CONDOMINIUM CORPORATIONS

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 Department.

Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.

Principal Issues:

Whether or not a condominium corporation claiming an exemption pursuant to 149(1)(l) will be required to file a NPO return (form T1044)/

Position:

Yes

Reasons:

The legislation makes no exception for an organization required to file some other type of return, such as a T2 Return. The T2 guide and guide for the NPO return both confirm this position

972805
XXXXXXXXXX J.E. Grisé
(613)957-2059

Attention: XXXXXXXXXX

November 19, 1997

Dear Sirs:

Re: Condominium Corporations

This is in reply to your letter of October 20, 1997 concerning whether or not condominium corporations are required to file a Non-Profit Organization (NPO) Information Return, Form T1044.

As indicated under the heading "Condominium Corporations" of the attached Technical News No. 4, it is now the Department's opinion that most residential condominium corporations will qualify as non-profit organizations under paragraph 149(1)(l) of the Income Tax Act.

Any organization, including a condominium corporation, that is claiming an exemption from Part I tax because of paragraph 149(1)(l) of the Act and meets one of the three conditions set out in paragraphs 149(12)(a) to (c) of the Act is required to file Form T1044. The T1044 return may be sent to our Department separately or, in the case of a corporation, attached to the corporation's T2 income tax return. In this respect, please refer to item 32 of the most recent T2 guide and page 4 of the Income Tax Guide to the Non-Profit Organization (NPO) Information return.

Yours truly,

John F. Oulton
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

Enclosure

c.c. North York TSO