How to complete Form T5013-1

If, at any time during the fiscal period, your partnership was a SIFT partnership, use Form T5013-1, Part lX.1 tax calculation – SIFT Partnerships, to report:

• The amount of Part IX.1 tax payable, and the allocation to the applicable jurisdictions;
• The balance due or the overpayment; and
• The deemed dividend to be allocated to the partners for the tax year.

Identification

Enter your partnership's name, account number, and fiscal period end in the appropriate boxes at the top of the schedule.

Original or amended

Tick (✓) the appropriate box.

Part l – Amount of Part IX.1 tax payable – SIFT partnerships

Section A – Federal tax payable

Enter the partnership's taxable non-portfolio earnings for the tax year on line 100 (line A). Multiply that amount by the net corporate income tax rate, expressed as a decimal fraction complete to all decimal places, on line B. Enter the result on line150 (line C). This is the federal tax the partnership has to pay for the tax year.

Section B – Provincial tax payable

Columns (1), (2) and (3) – Taxable non-portfolio earnings for the tax year and general corporate income tax rate in the province

For each province in which the partnership has a permanent establishment, enter the requested information on the appropriate line(s) of columns (1), (2) and (3).

The total of the amounts reported in column (1) should equal the partnership's taxable non-portfolio earnings reported on line 100 (line A).

Where the partnership has taxable non-portfolio earnings from outside any of the provinces listed in the table, enter the amount of taxable non-portfolio earnings on line 225, and do the related calculations.

Column (4) – Provincial SIFT tax rate
For each line, divide the amount in column (1) by the amount in column (2), then multiply that result by the rate entered in column (3). Enter the final result in column (4). This is the tax rate you have to use to calculate the provincial tax payable for each province for the tax year.

Line D – Total
Enter the total of all provincial SIFT tax rates included in column (4). You will need this decimal fraction to calculate the total of SIFT tax payable at Part 2.

Column (5) – Provincial tax payable
For each line, multiply the amount in column (2) by the calculated rate you entered in column (4), then enter the result in column (5). This is the provincial tax the partnership has to pay to the province for the tax year.

Part 2 – Balance due or overpayment

Line 300 (line E) – Total of SIFT tax payable
The total of the SIFT tax payable is calculated by multiplying the partnership's taxable non-portfolio earnings from line 100 (line A), by the total of the tax rates reported at lines B and D.
This amount should equal the total of line 150 (line C), and lines 250 to 265. Carry the amount from line E to line 306 of page 3 of the T5013 FIN, and to the generic box 169 of the T5013 slips.

Line 305 (line F) – Tax instalments paid
Enter the total of all of the tax instalments the partnership paid in the tax year.

Line 310 (line G) – Balance due or overpayment
Deduct the amount on line 305 (line F) from the amount on line 300 (line E) and enter the result on line 310 (line G). If the result is positive, you have a SIFT tax balance due. If the result is negative, you have made an overpayment.

If you have to pay a late-filing penalty as reported on line 307 of Schedule 52, add it to the amount reported on line G. Enter the result on line 307 of page 3 of the T5013 FIN. If the result is positive, you have to enclose the total payment with your partnership information return. If the result is negative, you have an overpayment and may be entitled to a reimbursement.

We will apply the overpayment to any outstanding liabilities the partnership owes on the same or related account(s). If you want the overpayment to be transferred to a different account, attach a letter to your partnership information return and we will review you request. We will do this only if all the required returns have been filed on the account and all related accounts. The payment of refunds will be withheld until all required returns have been filed.

Part 3 – Deemed dividend of a SIFT partnership

The difference between the partnership's taxable non-portfolio earnings for the tax year and the tax payable by the partnership for the tax year under Part IX.1 is deemed to be a dividend received by the partnership from a taxable Canadian corporation. This deemed dividend is allocated to the members of the partnership in the same proportion as the taxable non-portfolio earnings. Complete this part to calculate the deemed dividend to be allocated to the partners.

Line H – Taxable non-portfolio earnings for the tax year
Enter the partnership’s taxable non-portfolio earnings on line H; this is the same amount reported on line 100 (line A).

Line J – SIFT tax payable
Enter the amount from line 300 (line E).

Line 400 (line K) – Quebec SIFT tax payable
Report any amounts of Quebec SIFT tax payable for the tax year on line 400 (line K), if any. Add it to the amount reported on line J. Enter the total on line L.

Line 410 (line M) – Deemed amount of eligible dividend
Deduct the total amount of SIFT tax payable reported on line L from the amount of taxable non‑portfolio earnings reported on line H. Enter the result on line 410 (line M). This is the eligible dividend the partnership is deemed to have received. Allocate to each partner that is resident in Canada its share of the amount reported on line M in the generic box 132 of the T5013 slips.

Forms and publications

• T5013 Partnership Information Return guide T4068 and forms
• T5013-1 Part IX.1 income tax calculation – SIFT Partnerships

Date modified:

2016-03-03