10 February 1998 External T.I. E9731685 - CONDOMINUM, NPO'S

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) of the Act 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 NPO return both confirm this position.

973168
XXXXXXXXXX A.M. Brake

Attention: XXXXXXXXXX

February 10, 1998

Dear Sirs:

Re: Condominium Corporations

This is in reply to your letter of June 26, 1996, which was forwarded to us by our North York Tax Services Office for our reply. You asked whether or not condominium corporations are required to file a Non-Profit Organization (NPO) Information Return, Form T1044. We apologize for the delay.

As set out in 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 (the "Act").

Any organization, including a condominium corporation, that is claiming an exemption from Part I tax under 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, you will find relevant information in the T2 guide and in the Income Tax Guide to the Non-Profit Organization (NPO) Information return.

We trust our comments will be of assistance to you.

Yours truly,

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