10 January 1990 Income Tax Severed Letter AC59150 - Partnership Reporting Requirements

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.

19(1)                                             5-9150
                                                  C.R. Bowen 
                                                  (613) 957-2096

Dear Sirs:

Re: Partnership Reporting Requirements

We are writhing in reply to your letter of October 27, 1989 addressed to the Toronto District Office, wherein you requested information on partnership information reporting requirements and tax shelter reporting requirements.

Forms

Enclosed for your information are Information Circularss 1) No. 89-4 Tax Shelter Reporting and 2) No. 89-5 Partnership Information Return. The form numbers and names which must be filed in order to comply with the reporting requirements are indicated in these Circulars and can be obtained at the Forms Division of your nearest District Office. Each form will indicate the type of information required. The initial form which must be filed in order to obtain an identification number for 1) a partnership is located at the end of Information Circulars ("IC") No. 89-5, and 2) a tax shelter is the enclosed Form T5001. Both of these forms indicate where to send the application.

Tax Shelter

Paragraph 3 of IC No. 89-4 provides a general overview of the definition of a tax shelter. For more detailed information, we refer you to section 237.1 of the Income Tax Act and section 231 of the Income Tax Regulations. If, upon reviewing this material, it is unclear whether a particular partnership meets the definition of tax shelter, you should contact your District Office with your specific questions.

Partnership Return

Unless a partnership is exempt from filing the partnership information return, as described in paragraph 5 of IC No. 89-5, the initial return for an existing partnership is required:

a) in the case of a fiscal period of a partnership all of the members of which are corporations throughout the fiscal period, the respect of fiscal periods ending after August 31, 1989, and

b) in any other case, in respect of fiscal periods ending after December 31, 1988, except that a return that is required to be filed at any time before March 31, 1990 may be filed on or before that date. Therefore, a partnership, all members of which are not corporations, which has a fiscal period ending December 31 will be required to file a partnership information return for its 1989 fiscal period by March 31, 1990. A Guide to the Partnership Information Return will be available shortly at District Offices to assist taxpayers in filing this return.

We trust these comments will be of assistance.

Yours truly,

for Director Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch